Question

Internal control is an important concept for Curly’s business, separation of duties is part on of an internal control framework and refers to: Multiple Choice Having manager evaluate their employees at least annually. Senior management reviewing monthly variances between actual expenses versus budget. Preventing top management and lower-level employees from interacting. Individuals who have physical responsibility for assets should not also have access to accounting records.

Answer 1

Internal control is maintaining the framework for compliance with accounting and auditing standards. Having manager evaluating employee is performance evaluation. Senior management reviewing books is simply a review by higher management and nothing else. The interaction between top and lower management shall be promoted and hence, not relevant to this question. Last one is internal control as it creates division of responsibility and cross checking as well. The physical verification responsibility should be kept different from maintaining books.

Hence, correct option is Individuals who have physical responsibility for assets should not also have access to accounting records.