In the following situation, which internal control procedure needs strengthening? At Hofstra Services, the junior accountant collects cheques and cash from customers and records the transactions into the Journal. The controller approves the journal entries and bank reconciliations. The treasurer signs cheques and approves contracts.
A)Assignment of responsibilities
B)Separation of duties
C)Documents and records
D)Competent, reliable, and ethical personnel

Question

Quizplus · Accepted Answer

The junior accountant is responsible for both collecting cash and recording transactions, which violates the principle of separation of duties. This increases the risk of errors or fraud.

In the Following Situation, Which Internal Control Procedure Needs Strengthening