Which of the following is not a way that management can establish proper control over the enterprise's affairs?

a) rotation of employees over a range of jobs.

b) combining record-keeping with the handling of assets.

c) carrying insurance on asset.

d) requiring staff to take annual leave.

Answer: Option B

Explanation: The principle of internal control involves the segregation of duties for reducing the chances of fraud. Segregation of duties refers to the division of work between the employees so that the activities of employees can be monitored. Hence, management should not provide the task of recording with the handling of the asset as an employee may manipulate the records for his advantage.

Explanation for wrong options:

Option A: Rotation of employees will help the employees to train for different work areas of the business firm which will enhance the human talent of the firm.

Option C: Carrying insurance will help to protect the assets from unforeseen risk and thus safeguard assets from future loss.

Option D: Providing leave to the staff will create a good atmosphere in the firm as employees can rest from their exhaustive schedule.