Ron Jones has been a trusted employee for over 10 years. He is responsible for ordering merchandise inventory, receiving the inventory items, and authorizing the payment for these items. Which internal control principle, if any, is being violated?

Question

Business

Kaya

15 January, 18:45

Ron Jones has been a trusted employee for over 10 years. He is responsible for ordering merchandise inventory, receiving the inventory items, and authorizing the payment for these items. Which internal control principle, if any, is being violated?

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Answers (1)

Know the Answer?

Alia · Answer 1

Segregation of duties.

Explanation:

Segregation of duties -

The concept of segregation of duties is based on the shared responsibilities.

It refers to the method of assigning different person for different task, is referred to as segregation of duties.

It is the fundamental building block for running a business efficiently, in order to reduce any management risk.

In the business it is the major case of any fraud or error, as one person is responsible for maximum duties functioning in the business.

Therefore, it is import to divide various duties.

Hence, from the given scenario of the question,

The correct answer is segregation of duties.