Having one employee prepare company checks and sign those checks relates to which internal control activity?
A)a violation of proper segregation of duties
B)a violation of adequate documents and records
C)a good example of checks on recorded amounts
D)a good example of clearly defined authority and responsibility

Question

Quizplus · Accepted Answer

Having one employee prepare and sign company checks violates the principle of proper segregation of duties, which is a crucial internal control activity. The principle of segregation of duties ensures that no one individual has too much control over a transaction or financial process, and that different individuals are involved in each important stage of the process. In this case, the employee who prepares and signs the checks has too much control over the process, making it easier for them to commit fraud or conceal errors.

Having One Employee Prepare Company Checks and Sign Those Checks