Vaughan Services hires a new accountant to maintain its petty cash fund. Although the employee possesses an accounting degree, he/she had been previously convicted of embezzlement. Which internal control procedure needs to be addressed in this situation?

Question

Business

Rene Morse

27 September, 05:31

Vaughan Services hires a new accountant to maintain its petty cash fund. Although the employee possesses an accounting degree, he/she had been previously convicted of embezzlement. Which internal control procedure needs to be addressed in this situation?

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Answers (1)

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Natasha · Answer 1

Answer: Competent, reliable, and ethical personnel.

Explanation:

Vaughan Services needs to follow competent, reliable and ethical personnel procedure to addressed this type of situation.

Competent characteristic tell us about the employee skills, knowledge and capability or ability of doing some work successfully.

Reliable characteristic tell us about the employee performance, quality and trustworthy or not.

Ethical personnel tells us about the employee's behavior towards the other people, responsibilities towards work and how much he is committed towards work.