Separation of duties is an internal control technique that requires all of the following except:
A) Any individuals who have physical custody over cash should not also handle accounting records.
B) Any employees handling cash should not have access to ledger accounts and bank statements.
C) Any employee with custody of cash should also reconcile the bank statements to the ledger accounts but should not handle the accounting for cash.
D) The responsibility for approving, signing, and mailing checks and handling cash disbursement documents and records should be separate functions.

Question

Quizplus · Accepted Answer

Separation of duties requires that no single individual should have control over all aspects of any critical transaction. Therefore, an employee with custody of cash should not reconcile bank statements, as this would violate the principle of separation of duties.

Separation of Duties Is an Internal Control Technique That Requires