Company policy for internal control should include all of the following EXCEPT
A) employees will be rotated through a variety of assignments.
B) all cheques are signed by the owner (or responsible employee) after receiving authorization to pay from the departments concerned.
C) at time of payment, all supporting invoices or documents will be stamped "paid."
D) one employee should have the total responsibility for approving purchases, authorizing payments, and signing cheques.

Question

Quizplus · Accepted Answer

One employee having total responsibility for approving purchases, authorizing payments, and signing cheques is not a good internal control measure as it increases the risk of fraud and errors. A system of checks and balances are needed to ensure proper separation of duties. The other options all include good internal control measures.

Company Policy for Internal Control Should Include All of the Following