If an employee who has access to the custody of assets steals a cash remittance and covers the theft by recording a bad-debt write off, there was likely a failure in the category of __________.
A)segregation of duties
B)performance reviews
C)authorization control
D)physical controls

Question

Quizplus · Accepted Answer

The theft that was covered up with a bad-debt write off suggests that the employee was in a position to record transactions and had access to the custody of assets. This indicates a failure in segregation of duties, as the same person was responsible for both recording transactions and handling the assets.

If an Employee Who Has Access to the Custody of Assets