Which of following functions should be segregated?
A)opening the mail and making the journal entry to record cash receipts
B)authorizing credit and determining reorder quantities
C)maintaining the subsidiary ledgers and handling customer queries
D)providing information on inventory levels and reconciling the bank statement

Question

Quizplus · Accepted Answer

Opening the mail and making the journal entry to record cash receipts involves handling cash, which requires segregation of duties for internal control purposes. Separating these functions reduces the risk of misappropriation of cash. The other functions listed do not involve handling cash and are less susceptible to fraud.

Which of Following Functions Should Be Segregated