Question

An accounts payable clerk also has access to the approved supplier master file for purchases. The...

An accounts payable clerk also has access to the approved supplier master file for purchases. The control principle of

a.establishment of responsibility is violated.

b.independent internal verification is violated.

c.documentation procedures is violated.

d.segregation of duties is violated.
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Answer #1

d. Segregation of duty is violated.

If the accounts payable clerk also has access to the approved supplier master files for purchases, the chances of fraud are higher as the control principle of segregation of duty is violated. Accounts payable clerk is the person to oversee the payments to suppliers and if he has access to approved supplier master files for purchase, he could manipulate the accounts without any other person in the entity being known about it. Hence segragation of duty is critical to avoid fraud activities in enterprises.

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