Janet is the purchasing agent at Frameco Manufacturing.Her duties include vendor selection and ordering materials.Due to a recent economic downturn and resulting cut backs,Janet has been assigned the additional duty of preparing receiving reports after comparing the goods received to the purchase order.This is an example of:
A)unlimited access to materials.
B)independence of assigned functions.
C)misappropriation of assets.
D)a lack of segregation of duties.

Question

Quizplus · Accepted Answer

A lack of segregation of duties occurs when one person is responsible for multiple tasks that should be separated to provide a system of checks and balances. Janet's additional duty of preparing receiving reports means that she is responsible for both purchasing materials and verifying the receipt of those materials. This lack of segregation increases the risk of errors or fraud going undetected.

Janet Is the Purchasing Agent at Frameco Manufacturing