Answer (B) is correct . In the usual retail cash sales situation, the sales clerk authorizes and records the transactions and takes custody of assets. However, management ordinarily employs other compensating controls to minimize the effects of the failure to segregate functions. The cash receipts function is closely supervised, cash registers provide limited access to assets, and an internal recording function maintains control over cash receipts.
Answer (A) is incorrect because Competent personnel is a compensating control normally found in a cash sales environment.
Answer (C) is incorrect because Supervision is a compensating control normally found in a cash sales environment.
Answer (D) is incorrect because Limitation of access to assets is a compensating control normally found in a cash sales environment.
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