Proper separation of duties reduces the opportunity for persons to be in positions to both
A) Journalize entries and prepare financial statements.
B) Record cash receipts and cash disbursements.
C) Establish internal controls and authorize transactions.
D) Perpetrate a fraud and then conceal it in the books.

Question

Quizplus · Accepted Answer

Proper separation of duties ensures that no single individual has control over all aspects of any critical transaction, which reduces the risk of fraud and its concealment.

Proper Separation of Duties Reduces the Opportunity for Persons to Be