Joe is warehouse custodian and also maintains the accounting records of the inventory held at the warehouse. Which control procedure is violated?
A)documentation
B)independent checks of performance
C)segregation of duties
D)authorization of transactions and activities

Question

Quizplus · Accepted Answer

Joe's role violates the segregation of duties control procedure. The person who has custody of the assets should not maintain the accounting records for those assets. This helps to ensure that there is a division of responsibilities and that no one person has complete control over a transaction from start to finish.

Joe Is Warehouse Custodian and Also Maintains the Accounting Records