A Company Controller Set Up a Fictitious Subsidiary Office to Which

question 66

Multiple Choice

A company controller set up a fictitious subsidiary office to which he shipped inventories and then approved the invoice for payment.The inventories were sold and the proceeds deposited to the controller's personal bank account.Which of the following internal controls would be most effective in preventing that situation?

• A)Separation of duties
• B)Bank reconciliations
• C)Conflict of interest policy
• D)Limit checks

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