When considering recorded trade payables why is segregation of duties particularly important?
A) Suppliers may try and argue they have already paid the invoice, when funds have not in fact been received.
B) It reduces the chances that a supplier will be double-billed for the same transaction.
C) It addresses the risk of the organization underreporting the liability.
D) It reduces the risk of a staff member creating fraudulent payables for their own benefit.

Question

Quizplus · Accepted Answer

Segregation of duties is important to prevent fraud, such as a staff member creating fake payables to divert funds for personal gain.

When Considering Recorded Trade Payables Why Is Segregation of Duties