Which one of the following would the auditor consider to be an incompatible operation if the cashier receives remittances from the mailroom?
A) The cashier posts the receipts to the accounts receivable subsidiary ledger cards.
B) The cashier makes the daily deposit at a local bank.
C) The cashier prepares the daily deposit.
D) The cashier endorses the cheques.

Question

Quizplus · Accepted Answer

The cashier posting receipts to the accounts receivable subsidiary ledger cards is considered an incompatible operation because it involves both the custody of assets (handling cash or checks) and the recording function (posting transactions), which should be separated to ensure proper internal control and reduce the risk of errors or fraud.

Which One of the Following Would the Auditor Consider to Be