If the same employee is responsible for authorizing a business transaction and recording the transaction in the accounting records, this indicates a weakness in which element of a company's internal control system?
A)A good audit trail
B)Separation of duties
C)Internal review of controls
D)Competent employees

Question

Quizplus · Accepted Answer

Separation of duties is a fundamental element of internal control that helps prevent fraud and errors. This principle dictates that no single employee should be responsible for both authorizing transactions and recording them in the accounting records to avoid conflicts of interest and errors.

If the Same Employee Is Responsible for Authorizing a Business