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Which is the most approriate rationale for a mandatory vacation policy?
To enhance employee morale
To be used as a cost-saving measure
To identify potential errors or inconsistencies in business processes
To affirm that employees are properly cross-trained in multiple functions
Mandatory vacations help uncover potential fraud or inconsistencies. Ensuring that people who have access to sensitive internal controls or processes take a mandatory vacation annually is most important. Ensuring that employees are properly cross-trained in multiple functions improves the skills of employees. Improving employee morale helps in reducing employee burnout. Mandatory vacations may or may not be a cost-saving measure, depending on the enterprise.
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