Among the following pair of functions,which pair represents the most serious internal control weakness when the duties are performed by the same individual?
A) Purchasing and verification of vendor invoices
B) Check signing and cancellation of voucher documentation
C) Cash disbursement and verification of vendor invoices
D) Physical handling of incoming merchandise and preparation of receiving reports

Question

Quizplus · Accepted Answer

When the same individual is responsible for both cash disbursement and verification of vendor invoices, there is a significant risk of fraud or error, as the person could potentially authorize and make payments to fictitious vendors without detection.

Among the Following Pair of Functions,which Pair Represents the Most