In the following situation,which internal control procedure needs strengthening?
- At Hofstra Services,the operations accountant is responsible for safeguarding and maintaining the pipe inventory and also to record inventory transactions into the journal.A separate accounting clerk keeps records of the cash receipts and payments.The treasurer signs checks and approves contracts.
A) Assignment of responsibilities
B) Competent, reliable, and ethical personnel
C) Separation of duties
D) Documents

Question

Quizplus · Accepted Answer

While there is separation of duties between the operations accountant, accounting clerk, and treasurer, it would be beneficial to add a reconciliation process between the inventory records and the cash transactions to ensure accuracy and detect any possible discrepancies. Strengthening this internal control procedure would better protect Hofstra Services' assets.

In the Following Situation,which Internal Control Procedure Needs Strengthening