The following set of items describes activities completed by a company in purchasing and paying for merchandise and in collecting cash for merchandise sales. For each activity, identify whether or not the activity adheres to or violates sound internal control procedures. (Choices may be used more than once.)
-The clerk in the accounting department records both purchases and payments of invoices.
A)Adheres to sound internal controls
B)Violates sound internal controls
C)Neither strengthens nor violates internal control

Question

Quizplus · Accepted Answer

Having the same clerk record both purchases and payments of invoices violates sound internal control procedures because it does not segregate duties, increasing the risk of errors or fraud.

The Following Set of Items Describes Activities Completed by a Company