Answer (B) is correct . By segregating duties, organizations make it more difficult for one person to perpetrate a fraud. When custody of the asset and recordkeeping for the asset are invested in different persons, a fraud generally cannot be executed by one of the two parties. However, if they collude, the internal control aspect of the segregation is nullified.
Answer (A) is incorrect because Lack of training by itself cannot negate effective separation of duties.
Answer (C) is incorrect because Irregular employee reviews may affect employee job performance, but they alone cannot negate effective separation of duties.
Answer (D) is incorrect because While the absence of an internal audit activity may lessen the chances that an organization will maintain effective internal control over the long run, by itself it cannot negate effective segregation of duties.
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