Which of the following sets of duties would ordinarily be considered basically incompatible in terms of effective internal control?
A) Preparation of monthly statements to customers and maintenance of the accounts receivable subsidiary ledger.
B) Posting to the general ledger and approval of additions and terminations relating to the payroll.
C) Custody of unmailed signed checks and maintenance of expense subsidiary ledgers.
D) Collection of receipts on account and maintaining accounts receivable records.

Question

Quizplus · Accepted Answer

The collection of receipts on account and maintaining accounts receivable records are incompatible duties because it allows the same person to both handle cash and record transactions, increasing the risk of misappropriation or fraud.

Which of the Following Sets of Duties Would Ordinarily Be