The following set of items describes activities completed by a company in purchasing and paying for merchandise.For each activity,identify whether or not the activity adheres to or violates sound internal control procedures.
- An employee in the accounting department records cash receipts from customers and prepares a bank deposit slip.
A)Adheres to sound internal control procedures
B)Violates sound internal control procedures
C)Neither strengthens nor violates internal control

Question

Quizplus · Accepted Answer

Having the same employee record cash receipts and prepare the bank deposit slip violates sound internal control procedures because it does not segregate duties, increasing the risk of errors or fraud.

The Following Set of Items Describes Activities Completed by a Company