Question

what is the concept behind separation of duties in establishing internal control?
multiple choice
the external auditors of the company should have no contact with managers while the audit is taking place
employee fraud is less likely to occur when access to assets and access to accounting records are separated
duties of middle - level managers of the company should be clearly separated from those of top executives.
the companys financial accountant should not share information with the companys tax accountant.

Explanation:

Separation of duties in internal - control aims to prevent fraud by ensuring that no single employee has control over both assets and accounting records. This way, if an employee tries to misappropriate assets, there is a higher chance it will be detected as the accounting records are maintained by a different person.

Answer:

Employee fraud is less likely to occur when access to assets and access to accounting records are separated.