Brown's Convenience is open 7 days a week. The cash receipts from Saturday and Sunday are kept in an envelope in a back storage room and are deposited each Monday morning. This process violates which internal control activity?
A) establishment of responsibility
B) safeguarding of assets and records
C) segregation of duties
D) independent checks of performance

Question

Quizplus · Accepted Answer

Keeping cash receipts in an envelope in a back storage room over the weekend does not adequately protect the assets from theft or misplacement, violating the principle of safeguarding assets and records.

Brown's Convenience Is Open 7 Days a Week