Having one person post entries to accounts receivable subsidiary ledger and a different person post to the Accounts Receivable Control account in the general ledger is an example of
A) inadequate internal control.
B) duplication of effort.
C) external verification.
D) segregation of duties.

Question

Quizplus · Accepted Answer

Segregation of duties is a key internal control principle that involves separating responsibilities for different parts of a transaction or accounting process to help prevent errors or fraud. In this case, having one person post entries to the subsidiary ledger and a different person post to the control account helps ensure that at least two people are involved in the process and can catch any mistakes or discrepancies.

Having One Person Post Entries to Accounts Receivable Subsidiary Ledger