Which of the following would not be considered an element of good internal control?
A) Require monthly reconciliation of bank accounts with the cash account.
B) Require that all cash receipts be deposited on a daily basis.
C) Require that the individual who handles cash receipts be responsible for the accounting function related to those funds.
D) Require that approval for cash payments and the signing of cheques be assigned to different individuals.

Question

Quizplus · Accepted Answer

Requiring that the individual who handles cash receipts also be responsible for the accounting function related to those funds violates the principle of segregation of duties, which is a key element of good internal control. This could lead to potential fraud or errors not being detected.

Which of the Following Would Not Be Considered an Element