Which of the following business rules illustrates a proper implementation of internal control?
A)The employee that orders manterials can't also inspect the work.
B)The employee that performs part of the conversion work can't also perform other work in the conversion process.
C)The employee that authorizes production can't be the same employee that issues raw materials.
D)The person that receives the finished items can't also place them into their assigned warehouse location.

Question

Quizplus · Accepted Answer

This business rule illustrates a proper implementation of internal control because it separates the duties of authorizing production and issuing raw materials, preventing any one employee from having too much control over the production process. This reduces the risk of errors or fraud. The other options similarly specify separation of duties, but not as effectively as option C.

Which of the Following Business Rules Illustrates a Proper Implementation