Which of the following is a compensating control for a lack of segregation of duties in a small business environment?
A) Collusion between an accountant and cashier.
B) Active involvement and oversight by the owner.
C) Cumulative access and authority of a super-user.
D) Requirement for an annual physical inventory count.

Question

Quizplus · Accepted Answer

In a small business environment, it may not be possible to completely segregate duties due to limited resources. However, active involvement and oversight by the owner can act as a compensating control to ensure that no single individual has complete control over a process or transaction. This helps mitigate the risk of fraud or errors. Choices A and C are not compensating controls but create additional risks. Choice D is a good control but is not specifically compensating for a lack of segregation of duties.

Which of the Following Is a Compensating Control for a Lack