One example of internal controls is
A)having budgets that aren't reconciled against the plan.
B)relying solely on a computerized accounting system to make payments. for an
C)allowing a single individual to complete the payment cycle in a payment system.
D)the separation of duties for authorizing and making payments.
E)leaving all financial decisions to the sole discretion of the CFO.

Question

Quizplus · Accepted Answer

The separation of duties for authorizing and making payments is an example of a good internal control. It helps prevent fraud or errors by ensuring that no single person has complete control over the payment process. Options A, B, and E are all examples of weak internal controls that could potentially result in errors or fraud. Option C is also a weak internal control as it allows for the possibility of an individual engaging in fraudulent behavior.

One Example of Internal Controls Is