Which of the following is not a measure of good internal control?

Question

Quizplus · Accepted Answer

Combining authority to purchase goods and sign cheques is not a measure of good internal control because it violates the principle of segregation of duties. This means that one person should not have too much control or authority to manipulate financial transactions without being detected. Combining purchasing and cheque signing authority creates a risk of fraud or errors going undetected. A better practice is to separate these duties between different employees or departments to ensure checks and balances are in place.

A) Daily banking is a measure of good internal control because it helps to ensure that cash is deposited promptly and accurately, reducing the risk of theft or misappropriation.

B) Requiring all employees to take annual leave is a measure of good internal control because it creates an opportunity for other employees to step in and review their work, detect any irregularities, and prevent fraud from going undetected for too long.

C) Reconciling a control account with its subsidiary ledger is a measure of good internal control because it helps to identify and resolve any discrepancies or errors in the accounting records, enhancing the accuracy and reliability of financial reporting.

Which of the Following Is Not a Measure of Good