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 ordering, receiving, and paying for merchandise increases the potential for errors and fraud due to lack of segregation of duties, which is a key internal control principle.

Having One Person Responsible for the Related Activities of Ordering