Question

vaughan services hires a new accountant to maintain its petty cash fund. although the employee possesses an accounting degree, he/she had been previously convicted of embezzlement. which internal control procedure needs to be addressed in this situation?
a. separation of duties
b. documents
c. assignment of responsibilities
d. competent, reliable, and ethical personnel

Explanation:

The employee has a history of embezzlement, which relates to ethical and reliability aspects. The internal control procedure of competent, reliable, and ethical personnel is crucial as it ensures that those handling financial tasks (like the petty - cash fund) have the right character. Separation of duties (A) is about dividing tasks among different people. Documents (B) refer to record - keeping tools. Assignment of responsibilities (C) is about designating tasks. But in this case, the key is the employee's past unethical behavior (embezzlement), so the focus should be on having the right kind of personnel.

Answer:

D. competent, reliable, and ethical personnel