Which limitation of internal control cannot be overcome simply by improving segregation of duties?
Answer and explanation
Correct answer: A. Collusion between employees who check each other
- Step 1: Segregation relies on independent people checking each other.
- Step 2: If two employees agree to deceive, the check no longer works, however carefully duties are divided.
Answer
Collusion between employees who check each other.
Why not the others: A missing written policy can be fixed by creating one. A lack of separation can be fixed by changing who does each task. A missing review can be fixed by introducing one.
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