What principle is violated if the accounting manager can handle both accounts payable and receivable?

The principle that is violated when the accounting manager can handle both accounts payable and receivable is the separation of duties. This principle is a key internal control mechanism designed to prevent fraud and errors by ensuring that no single individual has control over all aspects of a financial transaction. By separating responsibilities among different individuals, organizations can create a system of checks and balances that reduces the risk of unauthorized actions or collusion.

When one person can manage both accounts payable and accounts receivable, it creates an opportunity for fraudulent activity, such as the potential to manipulate invoices or payments without oversight. This lack of segregation diminishes the effectiveness of controls intended to monitor and verify the accuracy of financial data and transactions. Implementing the separation of duties is essential for maintaining accurate financial practices and safeguarding assets within an organization.