Which situation indicates an internal control risk in the General Ledger/Financial Reporting Systems (GL/FRS)?
A) the employee who maintains the cash journal computes depreciation expense
B) the cash receipts journal voucher is approved by the Treasurer
C) the cash receipts journal vouchers are prenumbered and stored in a locked safe
D) the employee who maintains the cash receipts journal records transactions in the accounts receivable subsidiary ledger

Question

Quizplus · Accepted Answer

This situation indicates a lack of segregation of duties, as the same employee is handling both the cash receipts journal and the accounts receivable subsidiary ledger, increasing the risk of errors or fraud.

Which Situation Indicates an Internal Control Risk in the General