In the following situation,which internal control procedure needs strengthening?
- Hofstra Services hired a new accounting manager.He signed a contract for a new accounting information system,but his position did not specify whether he was authorized to do so or not.
A) Assignment of responsibilities
B) Competent, reliable, and ethical personnel
C) Separation of duties
D) Documents

Question

Quizplus · Accepted Answer

The internal control procedure that needs strengthening is the assignment of responsibilities. The accounting manager should not have the authority to sign a contract for a new accounting information system without approval from higher management. The company needs to clearly define the responsibilities and authorities of each position to prevent unauthorized actions.

In the Following Situation,which Internal Control Procedure Needs Strengthening