Which of the following is a control problem related to segregation of duties?
A) Julie writes expense checks and Mark collects cash from customers.
B) Bob order office supplies and deposits the company's checks.
C) Steve records receivables and writes off bad debts.
D) Rebecca records journal entries and orders lunch.

Question

Quizplus · Accepted Answer

Segregation of duties is a key internal control that aims to prevent fraud and errors. This is achieved by ensuring that no single individual has control over all aspects of a financial transaction. In choice C, Steve records receivables and writes off bad debts, which means he has control over both recording transactions and managing adjustments that could potentially be manipulated for fraud, thus violating the principle of segregation of duties.

Which of the Following Is a Control Problem Related to Segregation