What does the term, segregation of duties, mean in the context of good internal control?
What will be an ideal response?
One element of a good internal control system is to segregate duties so that if one person is behaving inappropriately, another is likely to see the misbehavior and take corrective action.
This system does not work if many high-level employees are willing to participate in the inappropriate behavior. Even the best systems of internal controls still rely on people.
You might also like to view...
According to the text, a basic rule of research is to examine secondary data first
Indicate whether the statement is true or false
Patsy, a registered nurse, has decided to start a home healthcare service to assist with the medical, meal preparation, and light housecleaning needs of older adults. To grow her business, Patsy is focusing her marketing efforts on the older adult population; in these efforts, she is involved with the _____ environment.
A. task B. general C. internal D. natural capital E. strategic allies
When a specified behavior is rewarded or punished every time it occurs, it is which type of schedule of reinforcement?
A. fixed-interval B. fixed-ratio C. partial D. continuous
Armando Company owns 15,000 of the 50,000 shares of common stock outstanding of Tito Company and exercises a significant influence over its operating and financial policies. The investment should be accounted for by the
A) equity method B) market method C) cost or market method D) cost method