When determining what duties need to be segregated: It is not necessary to seperate the accounting department from the operating departments It is not necessary to seperate the receiving of cash from the recording of cash
Added by Aurora E.
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Segregation of duties is a key internal control principle that aims to prevent fraud and errors by ensuring that no single individual has control over all aspects of a financial transaction. Show more…
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Adi S.
a. The same employee requests, records, and makes payments for purchases of inventory. b. The company saves money by having employees involved in operations perform the only review of internal controls. c. Time is saved by not updating records for the use of supplies. d. The recordkeeper is not allowed to write checks or initiate EFTs. e. Each salesclerk is in charge of their own cash drawer.
Jennifer S.
'Debate the logic used in the following statement: The person responsible for handling cash receipts should also prepare the bank reconciliation because he is most familiar with the deposits that have been made to the bank account'
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