Which of the Following Duties Should Be Segregated for Good

question 11

Multiple Choice

Which of the following duties should be segregated for good internal control?

• A) Approval of credit from issuance of sales orders
• B) Shipment of goods and entry of shipping transaction data
• C) Receipt of cash and maintenance of the cash account
• D) All of the above are proper segregation of duties.

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Definitions:

Independent Contract

A contractual arrangement where an individual or entity agrees to provide services or goods to another party without being employed by them, often for a specific project.

Day-to-Day Operations

The routine activities necessary for a business or organization to function efficiently, including administrative and managerial tasks.

Breaches

Instances where a law, agreement, or standard of conduct is violated or broken.

Agency Contract

A legal agreement in which one party, the agent, agrees to act on behalf of another, the principal, typically in a business context.