ACCA BT · Chapter 8 · Question 4 of 11
In a purchasing system, one clerk raises purchase orders, a different person records goods received, and a third person approves supplier invoices for payment. Which type of internal control does this illustrate?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Segregation of duties
Explanation
Segregation of duties splits the authorisation, recording and custody aspects of a transaction between different people, so that one person cannot both commit and conceal an error or fraud. Physical controls restrict access to assets, arithmetical controls check the accuracy of recording, and supervision involves oversight by a superior.
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