Which of the following statements relating to internal control ismost correct?

A.A characteristic of satisfactory internal control is a process that ensures personnel have capabilities commensurate with responsibility.

B.The functions of custody and recording can be combined without a significant increase in the risk of material misstatement.

Required: Answer in the space below:

i. Which of the two options (A or B) is correct.

ii. Why the response selected is correct.

iii. Why the response not selected is incorrect.