A small business owner can best offset the lack of separation of duties by:
A)creating an internal audit department.
B)installing the latest computer equipment and software.
C)being actively involved in the accounting process.
D)relying on the external auditor to detect errors.

Question

Quizplus · Accepted Answer

Being actively involved in the accounting process is the best way for a small business owner to offset the lack of separation of duties. This can include performing regular checks and reviews of financial statements, using accounting software with audit trails, and maintaining a detailed record-keeping system. It is important for the owner to have a good understanding of the financial operations of the business and to be aware of any potential risks or errors that may arise. Creating an internal audit department or relying solely on the external auditor may not be feasible or cost-effective for a small business. Installing the latest computer equipment and software may improve efficiency, but it does not directly address the issue of separation of duties.

A Small Business Owner Can Best Offset the Lack of Separation