A small business owner can best offset the lack of separation of duties by
A) Creating an internal audit department.
B) Installing the latest computer equipment and software.
C) Being actively involved in the accounting process.
D) Relying on the external auditor to detect errors.

Question

Quizplus · Accepted Answer

Being actively involved in the accounting process is the best way for a small business owner to offset the lack of separation of duties. By being directly involved in the accounting process, the owner can monitor financial transactions and ensure that proper controls are in place. This helps to prevent errors and fraud, and can also help the owner to detect any irregularities that do occur. While installing the latest computer equipment and relying on external auditors can also help, these measures are no substitute for direct involvement and oversight by the owner. Creating an internal audit department may also be impractical for a small business owner due to the cost involved.

A Small Business Owner Can Best Offset the Lack of Separation