Good internal control demands that no single employee be given too much responsibility.The segregation of duties is key to fulfilling this demand.Which two functions,when not performed by different employees,will cause a potential internal control problem due to the lack of separation of duties?
A)digital signature,specific authorization
B)custody,recording
C)digital signature,general authorization
D)custody,digital signature

Question

Quizplus · Accepted Answer

When one employee has custody of an asset and is also responsible for recording its transactions, it creates a potential for fraud or errors to go undetected. This is why these two functions should ideally be performed by different employees to ensure proper segregation of duties. The other options do not involve functions that are typically separated in internal controls.

Good Internal Control Demands That No Single Employee Be Given