Which of the following scenarios exemplifies a potential internal control weakness?
A) The same employee who receives cash from customers prepares a prelisting of cash receipts.
B) The same employee who records cash receipts in the accounts receivable subsidiary ledger ensures that the ledger automatically updates the information.
C) The same employee who restrictively endorses checks received from customers prepares the bank's check deposit slips.
D) The same employee who makes deposits at the bank prepares the monthly bank reconciliation.

Question

Quizplus · Accepted Answer

Having the same employee responsible for both making bank deposits and preparing the monthly bank reconciliation can lead to a lack of segregation of duties, increasing the risk of errors or fraud going undetected.

Which of the Following Scenarios Exemplifies a Potential Internal Control