Which operating procedure is illustrated when a store splits duties such as payment authorization, signing checks, and dealing with customers?

Which operating procedure is illustrated when a store splits duties such as payment authorization, signing checks, and dealing with customers?

• A. Separation of duties
• B. Dual control
• C. Unified command
• D. Single point of control

Answer: (A)

Separation of duties is the concept being tested. It reduces the risk of fraud and errors by dividing responsibilities among different people. In a store, having separate staff handle payment authorization, signing checks, and dealing with customers means no single person controls all steps of a transaction. This creates checks and balances: one person processes payments, another approves or signs off, and another tracks or reconciles records. If something goes wrong, the division of tasks makes it easier to detect and prevent misuse, because different eyes and roles oversee different parts of the process. Dual control would require two people to perform the same task together, which isn’t exactly what’s described here. Unified command isn’t about internal controls or financial procedures, and a single point of control would place all power in one person, removing the safeguards separation provides.

Separation of duties is the concept being tested. It reduces the risk of fraud and errors by dividing responsibilities among different people. In a store, having separate staff handle payment authorization, signing checks, and dealing with customers means no single person controls all steps of a transaction. This creates checks and balances: one person processes payments, another approves or signs off, and another tracks or reconciles records. If something goes wrong, the division of tasks makes it easier to detect and prevent misuse, because different eyes and roles oversee different parts of the process.

Dual control would require two people to perform the same task together, which isn’t exactly what’s described here. Unified command isn’t about internal controls or financial procedures, and a single point of control would place all power in one person, removing the safeguards separation provides.