Question

which internal control principle is lacking if one person is responsible for the related activities of ordering merchandise, receiving goods, and paying for them?
independent verification
conservatism
segregation of duties
establishment of responsibility

Explanation:

Segregation of Duties is a key internal control principle. It requires that related activities (like ordering, receiving, and paying) be assigned to different individuals. This separation reduces the risk of errors and fraud. If one person handles all these tasks, there's no check - and - balance. Independent Verification involves reviewing work, Conservation is about asset protection, and Establishment of Responsibility is about clearly defining who is in charge of a task. But in this case, the lack of separating these related activities points to Segregation of Duties.

Answer:

Segregation of Duties