Which of the following is an accurate statement relating to separation of duties?
A) Management should deny cash access to anyone responsible for entering sales and cash receipts transaction information into the computer.
B) All disagreements on the monthly statements should be directed to a designated person who has no responsibility for handling cash or recording sales or accounts receivable.
C) The credit granting function should be separate from the sales function.
D) All of the above are accurate statements.

Question

Quizplus · Accepted Answer

All of the statements are accurate examples of separation of duties.

A) Denying cash access to someone responsible for entering sales and cash receipt information into the computer is a good separation of duty as it prevents the possibility of fraud or error in the recording of transactions.

B) Directing all disagreements on monthly statements to a person with no responsibility for handling cash or recording transactions is a good separation of duty as it ensures an unbiased review of the records.

C) Separating the credit granting function from the sales function is a good separation of duty as it reduces the risk of salespeople granting credit to customers who may not be creditworthy.

Which of the Following Is an Accurate Statement Relating to Separation