CIMA BA4 · Chapter 7 · Question 3 of 10
Requiring two separate people to authorise and record a payment is an example of which type of control?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Segregation of duties
Explanation
Segregation of duties splits authorising, recording and custody between different people, so that one person cannot both commit and conceal an error or fraud. Physical controls protect assets, arithmetic controls check calculations, and supervision is oversight by a manager.
More Internal control, risk and audit MCQs
- Q5Which of the following is a key difference between internal audit and external audit?
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- Q7Which of the following is a limitation of any system of internal control?
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