Question

An example of POOR internal control is Select one: a. One person should be responsible for handling related transactions b. None of the above are examples of poor internal control c. A salesperson makes the sale, and a different person ships the goods d. The custodian of an asset should not maintain or have access to the accounting records e. The accountant should not have physical custody of the asset nor access to it

Answer 1

The correct answer is letter "A": One person should be responsible for handling related transactions.

Step-by-step explanation:

There are several measures companies can take in an attempt to reduce fraudulent employee activities and increase control. Assigning each worker a determined duty can help businesses to monitor their activity easily since employees will be limited to a certain number of activities only. If they engage in a different responsibility, the firm could start an investigation to find out what happened.

Thus, allowing one worker to handle related transactions is a signal of poor internal control in a corporation.