A situation that indicates an internal control risk in the GL/FRS is when a single employee performs incompatible duties, such as recording, authorizing, and reconciling financial transactions. Other risks include a lack of proper employee training, the absence of regular audits, and the use of outdated systems, all of which can lead to errors or fraud.
Which situation indicates an internal control risk in the general ledger/Financial reporting system (GL/FRS)?
Review the verified answer and explanation for this Audit past-paper question on CampusFin.
Question context
This question is part of 🌍 Current Affairs within the broader 🌐 Current Affairs & GK subject and appears in the Audit preparation collection. Reviewing the answer together with nearby questions helps reinforce the underlying concept and identify how it may appear in competitive exams.