Joe is a warehouse custodian and also maintains the accounting record of the inventory held at the warehouse. An assessment of this situation indicates
A) documentation procedures are violated.
B) independent internal verification is violated.
C) segregation of duties is violated.
D) establishment of responsibility is violated.

Question

Quizplus · Accepted Answer

Joe's dual role violates the segregation of duties principle, as he is responsible for both the physical custody and the accounting of inventory, which can lead to conflicts of interest and potential for fraud.

Joe Is a Warehouse Custodian and Also Maintains the Accounting