Choose the code letter of the best internal control principle that is related to the problem described:
-Cash shortages are not discovered because there are no daily cash counts by supervisors.
A) Establishment of responsibility
B) Segregation of duties
C) Physical, mechanical, and electronic control devices
D) Documentation procedures
E) Independent internal verification
F) Other controls

Question

Quizplus · Accepted Answer

Independent internal verification involves reviewing and checking the work performed by others. In this case, having supervisors or independent parties count the cash daily would help in discovering cash shortages, thereby addressing the problem described.

Choose the Code Letter of the Best Internal Control Principle