Final answer:
Separation of duties in financial transactions, such as recording versus custody of assets, is crucial to preventing fraud, particularly in cash handling. This internal control measure is important in businesses of all sizes and helps to safeguard assets.
Step-by-step explanation:
Procedures that require the recording of asset transactions to be separated from the custody of those assets are known as internal control measures. The answer to your question is a. are especially important in handling cash. Separation of duties is a key concept in internal controls that helps to prevent fraud and errors.
This is because it ensures that no single individual has control over all aspects of a financial transaction, making it more difficult for that person to commit and conceal fraud. It does not necessarily make it easy to cover up theft, nor does it automatically uncover collusion among employees. Furthermore, these controls are vital for businesses of all sizes, not just large ones.