Question

Kristof works as the accounts manager in a large manufacturing firm. He tries to segregate the duties among his subordinates. He tries to ensure that the same individual does not handle the cash, inventory, documentation, and other duties. According to him, such segregation minimizes the risk of fraud or embezzlement. Which element of internal accounting controls is related to Kristof’s way of managing his employees?

Answer 1

Answer:

Control procedures  is related to Kristof’s way of managing his employees

Explanation:

Employee fraud is a critical issue looked by associations of various kinds, sizes, areas, and ventures. While we might, all want to accept our representatives are faithful and working to help the association, the more significant part of them likely are, there are yet numerous reasons why your representatives may submit extortion and a few manners by which they may do it.

Fraud in numerous structures, however, can be separated into three classes: resource misappropriation, degradation, and budget report misrepresentation. Resource misappropriation, albeit least expensive, made up 90% of all extortion cases examined.