Mandatory vacations should be enforced ________.

• A. to improve employee diligence to threats
• B. to reduce the possibility of collusion between employees
• C. to be in compliance with state and federal law
• D. for ethical purposes

Answer: (B)

Mandatory vacations act as a key internal control that forces rotation of duties and brings in a fresh set of eyes to critical processes. When someone else temporarily takes over, the usual routine is disrupted, and the work is reviewed by another person. This interruption makes it harder for a fraudulent scheme to go unnoticed and increases the chance that any irregularities will be caught. It especially targets collusion, because two or more employees would need to coordinate across shifts and vacations to maintain a cover, which is less likely to stay hidden under observation and cross-checks.

This approach isn’t primarily about complying with a specific law or about ethical motives alone; the strongest rationale is to reduce the opportunity for fraud by reducing routine control gaps and to improve detection when duties are temporarily reassigned.