Name one internal control to prevent theft or misappropriation of court funds.

• A. One Person Handles All Steps From Receipt to Reconciliation
• B. Segregation of Duties Across Receipt, Posting, and Reconciliation
• C. Cash Handling Should Be Kept Unlocked
• D. Refunds Can Be Issued Without Approval

Answer: (B)

Segregation of duties is the main idea here. When different people handle receipt of funds, posting to records, and reconciliation, there’s a system of checks and balances that makes theft or misappropriation much harder. Each step acts as a separate control: the person who collects cash isn’t the same person who records it, and the person who records it isn’t the same person who compares the records to the bank or ledger. If something doesn’t align, it prompts an independent review, increasing the chance of early detection and deterrence.

Why this is the best fit: dividing responsibilities across these three functions eliminates a single point of control that someone could exploit to steal funds and cover it up. The other options undermine security: letting one person handle all steps creates a single point of failure; keeping cash handling unlocked invites theft; and issuing refunds without approval removes safeguards that prevent improper payments.