A control plan that is designed to detect a fraud by having one employee periodically do the job of another employee is called:
A) segregation of duties
B) forced vacations
C) periodic audits
D) management control

Question

Quizplus · Accepted Answer

The control plan described in the question is known as forced vacations. This is when an employee is required to take time off work, and during their absence, a different employee takes over their responsibilities. This helps to detect fraud or errors that may be occurring when an employee is present and in control of a particular task. Segregation of duties involves dividing tasks among different employees, while periodic audits involve reviewing and scrutinizing financial statements or operational processes at specific intervals. Management control involves the monitoring and management of all aspects of a business or organization. None of these controls involve the specific measure of forcing employees to take vacations.

A Control Plan That Is Designed to Detect a Fraud