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:

Payroll Taxes Deposits

Payments made by employers to the IRS or other tax authorities for taxes withheld from employees' wages, including Social Security and Medicare taxes.

Lookback Period

The lookback period is a defined timeframe in the past during which certain events or transactions are reviewed for tax or regulatory compliance purposes.

TIN

Taxpayer Identification Number; a unique identifier assigned by the Internal Revenue Service or Social Security Administration to track taxpayers and accounts.

W-9 Forms

A request for taxpayer identification number and certification, used in the United States to provide information to entities that pay you income.