At Radiant Inc.,the operations department is also responsible for recording cash transactions as it does not have a separate accounting department. In the above situation,which internal control procedure needs strengthening?
A)assignment of responsibilities
B)competent,reliable,and ethical personnel
C)separation of duties
D)documents

Question

Quizplus · Accepted Answer

The internal control procedure that needs strengthening is separation of duties. Recording cash transactions should be a separate responsibility from the operations department. This reduces the risk of errors and fraud as it ensures that one department does not have complete control over the cash transactions from beginning to end. Separation of duties ensures that different individuals or departments are responsible for different aspects of a transaction, thereby increasing the checks and balances within the organization.