Developing and enforcing rules that prevent the employee responsible for the asset from being able to account for the asset is called

Question

Quizplus · Accepted Answer

Separation of duties is a key internal control mechanism that establishes distinct roles and responsibilities for different individuals involved in a business process to reduce the risk of fraud, errors, and misstatements. The idea is to prevent any one person from having complete control over a transaction or asset, which provides a check and balance for the system. By segregating duties, the employee responsible for the asset cannot also account for the asset, thereby reducing the opportunity for malfeasance. Options B, C, and D are not relevant to the given scenario.

Developing and Enforcing Rules That Prevent the Employee Responsible for the Asset