Which situation would NOT result in a separation of duties?
A) The person who approves purchases does not make the payments.
B) The person who makes journal entries is the same as the person who signs and mails checks.
C) The person who makes purchases is different from the one who approves the purchase.
D) The person who distributes paychecks does not make journal entries.

Question

Quizplus · Accepted Answer

Separation of duties is a key concept in internal control systems to prevent fraud and errors. This principle dictates that no single individual should have control over all aspects of a financial transaction. In choice B, having the same person make journal entries and also sign and mail checks does not separate the duties related to transaction processing and cash disbursement, thus not adhering to the principle of separation of duties.

Which Situation Would NOT Result in a Separation of Duties