Which is not a key segregation of duties for the revenue process? Different parties should:
A)prepare shipping orders and prepare bills of landing.
B)perform the credit and billing functions.
C)perform the shipping and billing functions.
D)receive cash and adjust accounts receivable.

Question

Quizplus · Accepted Answer

Segregation of duties is a key internal control that helps prevent fraud and errors. In the revenue process, it is important to separate responsibilities to ensure that no single individual has control over all aspects of a transaction. Preparing shipping orders and bills of lading are both part of the shipping process, and having the same party perform these tasks does not violate the principle of segregation of duties. The other options (B, C, D) describe combinations of duties that should be segregated to prevent conflicts of interest and reduce the risk of errors or fraud.

Which Is Not a Key Segregation of Duties for the Revenue