Having one person responsible for the related activities of ordering merchandise, receiving goods, and paying for them
A)increases the potential for errors and fraud.
B)decreases the potential for errors and fraud.
C)is an example of a control activity.
D)reduces cost and maximizes benefit.

Question

Quizplus · Accepted Answer

Having one person responsible for multiple related activities like ordering, receiving, and paying for merchandise increases the potential for errors and fraud because it lacks segregation of duties, which is a key internal control principle designed to reduce such risks.

Having One Person Responsible for the Related Activities of Ordering