Which situation indicates an internal control risk in the general ledger/financial reporting systems (GL/FRS)?
A)the employee who maintains the cash journal computes depreciation expense
B)the cash receipts journal voucher is approved by the Treasurer
C)the cash receipts journal vouchers are prenumbered and stored in a locked safe
D)the employee who maintains the cash receipts journal records transactions in the accounts receivable subsidiary ledger

Question

Quizplus · Accepted Answer

The situation where the employee who maintains the cash receipts journal also records transactions in the accounts receivable subsidiary ledger indicates an internal control risk due to a lack of segregation of duties. This could allow for the manipulation of records without detection.

Which Situation Indicates an Internal Control Risk in the General