As an internal control, separation of duties would help prevent: (i) theft of inventory, (ii) computer viruses.

Question

Quizplus · Accepted Answer

Separation of duties refers to dividing responsibilities among different employees to prevent fraud or errors. In this case, separating the duties of inventory management and custody helps prevent theft. However, separation of duties is not directly related to preventing computer viruses, so option B is incorrect. Option C is incorrect because it overstates the scope of separation of duties. Option D is incorrect because separation of duties is a commonly used internal control that helps prevent many types of fraud and errors, including theft of inventory.

As an Internal Control, Separation of Duties Would Help Prevent