Which of the following descriptions of job responsibilities reflects improper segregation of duties?
A)The person who handles receiving of goods also handles delivery of goods.
B)The person who inputs sales invoices also inputs purchase invoices.
C)The person who opens the mail is also the person who enters cash receipts.
D)The person who verifies the accuracy of payroll inputs also authorizes sales returns.

Question

Quizplus · Accepted Answer

Segregation of duties is a key internal control that helps prevent fraud and errors. This principle dictates that no single individual should have control over all aspects of a financial transaction. In choice C, having the same person open the mail and enter cash receipts could allow for the misappropriation of funds without detection, as this individual could potentially manipulate or fail to report cash receipts, undermining the organization's internal controls.

Which of the Following Descriptions of Job Responsibilities Reflects Improper