Which statement about mandatory vacations is true?

• A. They are not effective
• B. They are effective if workload is covered
• C. They increase risk
• D. They are not widely used

Answer: (B)

Mandatory vacations serve as a detection mechanism for fraud or errors by rotating duties so no one is always handling the same tasks. When coverage is arranged, a different person steps in, and the handoff with proper oversight can reveal inconsistencies in records, approvals, or processes that the regular handler might conceal. This is why the practice is effective only when workloads can be covered—so work continues smoothly and the substitute has access to the necessary information to review and challenge routines. If the workload isn’t adequately covered, backlogs or rushed decisions can occur, reducing the control’s effectiveness. So the statement that mandatory vacations are effective if workload is covered reflects how the control works in practice.