Claudia Andreou was concerned when she reviewed the operations of her client and noticed that many of the employehad incompatible dutiover the recording of transactions and custody of assets. This best refers to which desired control?
A) information processing controls
B) physical controls
C) authorization controls
D) segregation of incompatible duties

Question

Quizplus · Accepted Answer

Segregation of incompatible duties is a fundamental control in preventing fraud and errors in financial reporting. When employees have incompatible duties, they may be able to record transactions and manipulate the accounting records to conceal their fraudulent activities, or they could steal the assets that they are responsible for. Segregation of duties ensures that no single individual controls all aspects of a transaction or asset, helping to mitigate the risks of fraud and errors.

Claudia Andreou Was Concerned When She Reviewed the Operations of Her