In the following situation, which internal control procedure needs strengthening? Santhom Inc. does not have a separate accounting department. Its operating departments are also responsible for recording transactions in the books of accounts of the company apart from their main operations.
A)assignment of responsibilities
B)competent, reliable, and ethical personnel
C)separation of duties
D)documents

Question

Quizplus · Accepted Answer

Santhom Inc. needs to strengthen its separation of duties. This means that the responsibilities of their operating departments should be clearly defined and separated to prevent any misappropriation of funds or errors in recording transactions. Without proper separation of duties, there is a higher risk of human error and fraud. It is important for a company to have a clear division of responsibilities to ensure accountability and integrity in financial reporting.

In the Following Situation, Which Internal Control Procedure Needs Strengthening