What Is the Concept Behind Separation of Duties in Establishing

question 43

Multiple Choice

What is the concept behind separation of duties in establishing internal controls?

• A)The company's financial accountant should not share information with the company's tax accountant.
• B)Duties of middle-level managers should be clearly separated from those of top executives.
• C)Employee fraud is less likely to occur when access to assets and access to accounting records are separated.
• D)The external auditors of the company should have no contact with managers while the audit is taking place.

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Definitions:

Physical Job Withdrawal

Actions taken by employees to distance themselves from their work tasks, often as a result of dissatisfaction or disengagement, such as taking extended breaks or excessive absenteeism.

Job Involvement

The degree to which people identify themselves with their jobs.

Job Withdrawal

The process whereby an employee disengages from their current job role, which may lead to quitting or significantly reduced productivity.