Combining the Functions of Authorizing and Executing Events Is a Violation

question 6

True/False

Combining the functions of authorizing and executing events is a violation of the organizational control plan known as segregation of duties.

---

Definitions:

Reserve Requirement

A regulation set by central banks requiring commercial banks to hold a certain amount of their deposits as reserves, either as cash in their vaults or as deposits with the central bank, to ensure liquidity.

Money Multiplier

The ratio of the increase in total money supply generated from an initial deposit in a banking system.

Compliance

The act of conforming to or following rules, regulations, standards, or laws.

Reserves

Funds or assets set aside to meet future liabilities, unexpected costs, or potential financial obligations.