Scenario: The Weak Control Environment

Reading Passage

SmallTown Bank has three employees in its accounting department. Alice handles the cash receipts and opens the mail. Bob records the entries into the General Ledger. Charlie performs the bank reconciliation and has the authority to sign checks.
Question 1 of 5

Which of the following represents a conflict in Alice's duties?

Question 2 of 5

Which of the following is a major control weakness in Charlie's duties?

Question 3 of 5

What is the primary goal of "Segregation of Duties"?

Question 4 of 5

Which duty should be separated from "Recording" to be effective?

Question 5 of 5

If Charlie signs a check to himself, who is most likely to catch it if duties are properly segregated?

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