BSF Limited is engaged in the business of trading leather goods. You are the internal auditor of the company for the year 2017-18. In order to review internal controls of the sales department of the company you visited the department and noticed the work division as follows: 1) An officer was handling the sales ledger and cash receipts. 2) Another official was handling dispatch of goods and issuance of Delivery challans. 3) One more officer was there to handle customer/ debtor accounts and issue of receipts. As an internal auditor do you think that there was proper division of work? If not, why? - Study24x7
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BSF Limited is engaged in the business of trading leather goods. You are the internal auditor of the company for the year 2017-18. In order to review internal controls of the sales department of the company you visited the department and noticed the work division as follows: 1)...

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A

There is proper division of work as the dispatch and sales ledger maintenance work is allotted to different officials.

B

Company has not done proper division of work as the receipts of cash should not be handled by the official handling sales ledger.

C

Delivery challans should be verified by an authorised official other than the officer handling dispatch of goods.

D

Both b and c are correct.

MBA/Management CLAT/CE-Law Finance/CA
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