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.)
-Checks are signed by the clerk in the accounting department.
A)Adheres to sound internal controls
B)Violates sound internal controls
C)Neither strengthens nor violates internal control

Question

Quizplus · Accepted Answer

Having a clerk in the accounting department sign checks violates sound internal control procedures because it does not properly segregate duties. Ideally, the authority to sign checks should be separated from accounting and record-keeping functions to prevent fraud and errors.

The Following Set of Items Describes Activities Completed by a Company