Which of the following is NOT a basic principle of internal control?

• A. Lack of written procedures
• B. Appropriate division of duties
• C. Qualified personnel
• D. Sound written procedures

Answer: (A)

Internal control relies on having clear, documented processes that guide who does what, when, and how, and on people who are capable of carrying them out. Clear, written procedures are essential because they provide a standard method for performing tasks, help ensure consistency, facilitate training, and create an audit trail for accountability. An appropriate division of duties prevents one person from controlling all parts of a transaction, reducing the risk of error and fraud. Having qualified personnel ensures tasks are performed competently and errors are minimized. Describing a lack of written procedures is not a basic principle; the absence of written procedures would undermine control by creating confusion and inconsistency. Accordingly, the option describing lack of written procedures is not aligned with sound internal control, while sound written procedures, proper separation of duties, and qualified personnel are.