An accounts payable clerk also has cheque signing authority.Which control procedure is violated?
A)authorization of transactions and activities
B)independent checks of performance
C)documentation
D)segregation of duties

Question

Quizplus · Accepted Answer

The segregation of duties is violated when an accounts payable clerk has cheque signing authority as this allows them to control the entire process from initiating and approving a payment to disbursing the funds through the signing of the cheque. This creates the risk of fraud and errors as one individual has access to all aspects of the financial transaction. Separating the responsibilities of initiating, approving and disbursing payments can help to prevent these risks.

An Accounts Payable Clerk Also Has Cheque Signing Authority