An example of poor internal control is
A) The accountant should not have physical custody of the asset nor access to it.
B) The custodian of an asset should not maintain or have access to the accounting records.
C) One person should be responsible for handling related transactions.
D) A salesperson makes the sale and a different person ships the goods.

Question

Quizplus · Accepted Answer

One person being responsible for handling related transactions indicates a lack of segregation of duties, which is a fundamental principle of internal control. This can lead to errors or fraud going undetected.

An Example of Poor Internal Control Is