Final answer:
The principle of internal control that calls for different individuals to be responsible for related activities is the Segregation of Duties (Option D). This principle minimizes the risk of errors and fraud by distributing tasks across multiple personnel, which acts as a system of checks and balances.
Step-by-step explanation:
The principle of internal control that requires different individuals to be responsible for related activities is known as Segregation of Duties. This principle is aimed at reducing the risk of error or fraud in any part of a transaction or business process. By having multiple people involved, it ensures that no single individual has complete control over all aspects of a transaction, thereby providing checks and balances within the system.
Segregation of duties is crucial for safeguarding a company's assets and is one of the foundational elements of a strong internal control system. It helps prevent fraud from occurring by dividing tasks and responsibilities in a way that requires collusion among employees to perpetrate a fraudulent act, making it more difficult to commit and conceal. For example, in a purchasing department, one person could be responsible for authorizing purchase orders, while another receives the goods and a third person manages the payments.
Therefore, the direct answer to the question is D. Segregation of Duties. This concept is fundamental in designing an effective internal control system, ensuring that different responsibilities are distributed among various individuals or departments.