Which of the following sets of duties would ordinarily be considered basically incompatible in terms of good internal control?
A)Preparation of monthly statements to customers and maintenance of the accounts payable subsidiary ledger.
B)Posting to the general ledger and approval of additions and terminations relating to the payroll.
C)Custody of unmailed signed checks and maintenance of expense subsidiary ledger.
D)Collection of receipts on account and maintaining accounts receivable records.

Question

Quizplus · Accepted Answer

Collection of receipts on account and maintaining accounts receivable records are duties that should be separated to prevent an individual from being able to both handle cash receipts and adjust customer balances, which could allow for the misappropriation of funds without detection.

Which of the Following Sets of Duties Would Ordinarily Be