Proper segregation of duties for the production process,says those with custody of inventories should not
A)Request new materials or complete production reports.
B)Punch time cards or fill out quality control reports
C)Authorize production,perform cost accounting recordkeeping,or prepare cost analyses.
D)Produce finished units or transfer raw materials into production

Question

Quizplus · Accepted Answer

Those with custody of inventories should not authorize production or perform cost accounting recordkeeping as this can lead to a conflict of interest and increase the risk of fraud or errors. It is important to have proper segregation of duties to ensure that no single individual controls an entire process and to prevent the possibility of one person carrying out fraudulent activities undetected. Therefore, options A, B, and D are all acceptable duties for those with custody of inventories.

Proper Segregation of Duties for the Production Process,says Those with Custody