A control available in a small company, which may be necessitated because of lack of competent personnel, is:
A)a wider segregation of duties.
B)a voucher system.
C)fewer transactions to process.
D)the owner-manager's direct involvement in the control process.

Question

Quizplus · Accepted Answer

In a small company with a lack of competent personnel, the owner-manager's direct involvement in the control process can be an effective control measure. The owner-manager can oversee and monitor the activities of the few employees in the company, ensuring that they comply with company policies and procedures, and preventing errors and fraud. This can help to mitigate the risks associated with lack of competence, and can help the company to maintain proper controls without the need for a larger staff or more sophisticated control systems. Therefore, option D is the best choice.

A Control Available in a Small Company, Which May Be