Indicate which of the features of an effective internal control system are involved in the practices set out in the following question: Segregation of duties involve:
A) clearly establishing responsibility lines.
B) maintaining effective records.
C) separating record-keeping from handling of assets.
D) physically protecting sensitive assets.

Question

Quizplus · Accepted Answer

Segregation of duties involves separating record-keeping from handling of assets, which helps to prevent fraud or errors. This feature of an effective internal control system ensures that no single employee has control over all aspects of a transaction or process, reducing the risk of errors or fraud going undetected. While establishing responsibility lines, maintaining effective records, and physically protecting sensitive assets are also important features of an effective internal control system, they are not directly related to segregation of duties.

Indicate Which of the Features of an Effective Internal Control