An appropriate division of duties is a basic principle of internal control.

• A. Not sure
• B. It depends
• C. True
• D. False

Answer: (C)

Dividing duties is a fundamental internal-control practice because it creates checks and balances that reduce the chance of errors and fraud. When different people handle different steps of a transaction—such as authorizing, recording, and safeguarding assets—no single person can both commit and conceal a misstatement. This separation makes problems easier to detect during subsequent reviews and reconciliations and strengthens accountability.

In a municipal court context, for example, the person handling cash receipts shouldn’t also post them or reconcile the cash drawer. Assigning distinct roles for receipt handling, bookkeeping, and reconciliation ensures independent verification of transactions.

So, the statement is true. Options suggesting uncertainty, dependency on context, or a false principle don’t align with established internal-control standards.