Question

A good system of internal controls requires that the physical custody of assets be separated from the accounting for those assets. This concept is known as safeguarding assets and records.
a. True
b. False

Answer 1

The answer to the question above is letter B, False. Safeguarding assets and records is not the "concept" termed for the physical custody of assets be separated from the accounting for those assets but it is the objective of the internal controls itself that with separation of records keeping from the custody over asset is intended to reduce fraud issues.