Asked by Kelly Dunsmore on Jun 04, 2024
Verified
Having one person post entries to accounts receivable subsidiary ledger and a different person post to the Accounts Receivable Control account in the general ledger is an example of
A) inadequate internal control.
B) duplication of effort.
C) external verification.
D) segregation of duties.
Segregation of Duties
A principle in accounting and corporate governance that aims to reduce the risk of error and fraud by dividing responsibilities among different individuals or departments.
Accounts Receivable
Financial obligations of clients or customers towards a business for received goods or services that are awaiting payment.
Subsidiary Ledger
A subsidiary ledger is a group of similar accounts whose totals summarize into a single amount shown in the general ledger, aiding detailed financial analysis and tracking.
- Realize the importance of partitioning responsibilities to decrease the likelihood of errors and prevent misconduct.
Verified Answer
Learning Objectives
- Realize the importance of partitioning responsibilities to decrease the likelihood of errors and prevent misconduct.
Related questions
The Person Responsible for Making Credit Sales Should Be the ...
The Responsibility for Keeping the Records for an Asset Should ...
The ______________ of an Asset Should Not Have Access to ...
A(n)_________ Leads Another to Believe in a Condition That Is ...
The Elements of Fraud Include Which of the Following ...