Which of the following is NOT a way that management can establish effective control over the company's affairs?
A) There is a rotation of employees over a range of jobs.
B) Record-keeping is combined with handling of assets.
C) Insurance is carried on assets.
D) Staff are required to take annual leave.

Question

Quizplus · Accepted Answer

Combining record-keeping with the handling of assets does not establish effective control; instead, it increases the risk of fraud or errors because it violates the principle of segregation of duties, which is crucial for internal control.

Which of the Following Is NOT a Way That Management