Having one employee prepare company checks and sign those checks is:
A) a violation of proper segregation of duties
B) a violation of adequate documentation
C) a good example of independent verification
D) a good example of establishing responsibility

Question

Quizplus · Accepted Answer

Having one employee prepare and sign company checks is a violation of proper segregation of duties, as one person has too much control over the financial process. A better practice would be to have one employee prepare the checks and another employee review and sign them. This provides a system of checks and balances and reduces the likelihood of fraud or errors.

Having One Employee Prepare Company Checks and Sign Those Checks