Two clerks sharing the same cash register is a violation of which internal control principle?

Two clerks sharing the same cash register is a violation of which internal control principle?

A. Establish responsibilities.

B. Maintain adequate records.

C. Insure the assets.

D. Bond key employees.

E. Apply technological controls.

Answer: A. Establish responsibilities.

This position is a violation of the principle of assignment of responsibilities in internal control systems; two clerks should never be allowed to work on the same cash register. This asserts that there should be delegation of duties where every employee is given specific tasks as a means of monitoring in case of fraud or mistakes.

When two clerks work as cashiers, it becomes almost impossible to identify the person who is at fault when there is embezzlement of money or other related vices. It should also be noted that the lack of clear accountability in these cases raises concerns of how cash is managed, unintentional mistakes that could occur, or even fraudulent acts.

Standard procedure as per the internal controls policies means that each employee should be assigned an individual till or be authorized to handle cash. It also optimises accountability and monitoring by compartmentalising activities, in addition to minimising the probability of discrepancies or fraud.