Which of the following is listed as a means to help assure internal control when duties cannot be fully separated due to a limited staff size?

• A. Rotation of duties among personnel
• B. More frequent internal audits
• C. Enforced vacations
• D. Increased payroll deductions

Answer: (C)

When duties can’t be fully separated because of a small staff, a key compensating control is enforcing vacations. Requiring employees to take planned time off means another person steps in to perform those duties for a period. This provides an independent check on the processes, helping to reveal irregularities, errors, or fraud that might go unseen when the same person handles all aspects of a task. It also confirms that procedures are well-documented and understood by others, not just the person who normally performs them.

Rotating duties can help, but it isn’t always practical with limited staff. More frequent internal audits are beneficial but may be limited by resources. Increased payroll deductions don’t address the control issue of separation of duties.