Question

Which internal control procedure is followed when the work of one department acts as a check on the work of another?

a.Proper authorizations

b.Safeguarding assets and records

c.Segregation of duties

d.Independent verification

Answer 1

Internal control is a process designed for effectiveness of operations of the organisation. The following internal control procedure is followed when the work of one department acts as a check on the work of another:

Option (d) is correct. Independent verification of performance of employees check by supervisor ensures reliability and improves efficiency. The work of one department acts as a check on the work of another.

Option (a) is incorrect. Proper authorisation ensures that all activities of the organisation adhere to the guidelines of the organisation.

Option (b) is incorrect. Safeguarding assets and records prevents unauthorised access and theft of assets and records.

Option (c) is incorrect. Segregation of duties require that different individuals must perform different organisational activities.