Asked by Daniel Amoako on Jul 21, 2024
Verified
Internal control is enhanced by separating the control of a transaction from the record-keeping function.
Internal Control
Methods and protocols established by an organization to guarantee the reliability of financial and accounting data, foster responsibility, and avert deceit.
Record-Keeping Function
The process of maintaining a record of business transactions and financial activities for future reference.
- Fathom the notion and components involved in internal control systems over cash.
Verified Answer
CM
Chrissy MartinezJul 23, 2024
Final Answer :
True
Explanation :
Separation of duties is a key component of internal control. When the control of a transaction is separated from the record-keeping function, it reduces the risk of errors, fraud, and misuse of information. This helps to enhance the effectiveness of internal control systems.
Learning Objectives
- Fathom the notion and components involved in internal control systems over cash.