What Is One Way to Segregate Duties to Improve Controls

question 98

Multiple Choice

What is one way to segregate duties to improve controls over cash?

• A)Request all customers to pay in cash.
• B)Separate sales employees from employees who book the accounting entries.
• C)Request all customers to pay by cheques made payable to "CASH."
• D)Have the employee who is responsible for making cash deposits to the bank also do the bank reconciliations.

---

Definitions:

Indexed Mutual Fund

A mutual fund designed to replicate and manage a portfolio to match the performance of a market index.

Economic Downturn

A period of reduced economic activity characterized by declines in spending and investment, often leading to recession.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to reduce exposure to any single asset or risk.

Diversifiable Risk

A type of risk that can be reduced or eliminated from a portfolio through investments in a variety of assets, also known as unsystematic risk.