Effective internal control includes all the following steps except:
A)The Customer Order department prepares a sales order upon receipt of an order.
B)The Billing department compares what was shipped with what was ordered and prepares and mails a sales invoice.
C)The Accounting department receives the checks and the mailroom listing of checks received and prepares the daily bank deposit.
D)The Accounting department reconciles the bank statement with accounting records.

Question

Quizplus · Accepted Answer

The Accounting department receiving checks and preparing the daily bank deposit represents a lack of segregation of duties, which is a key principle of effective internal control. Typically, the handling of cash and the recording of transactions should be performed by different individuals or departments to reduce the risk of errors or fraud.

Effective Internal Control Includes All the Following Steps Except