Asked by Azrulll Asrul on May 14, 2024
Verified
One internal control safeguard is to assign all the duties of receiving, depositing, and recording cash to the same employee.
Internal Control
Processes designed to provide reasonable assurance regarding the effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws.
Safeguard
Measures or controls put in place to protect assets, including physical security and internal controls.
- Know the internal control procedures and policies for safeguarding a company's assets.
Verified Answer
CF
Crispin FloresMay 21, 2024
Final Answer :
False
Explanation :
Assigning all duties related to cash handling to the same employee increases the risk of fraud and errors, and violates the internal control principle of segregation of duties, which aims to spread responsibilities among multiple employees to prevent fraud and mistakes.
Learning Objectives
- Know the internal control procedures and policies for safeguarding a company's assets.
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