Define segregation of duties and explain how it benefits internal control.
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Question

Quizplus · Accepted Answer

The Answer is Segregation of duties is an internal control procedure in which no one person is responsible for all of the records and documents for an activity. An example would be that one person should not prepare the purchase order, verify the receipt of the merchandise, prepare the invoice and receive the payment for an order. By separating these responsibilities, the opportunity for fraud or theft is minimised. Segregation of duties also makes it less likely that an error will go undetected. This is the purpose of internal control policies and procedures.

Define Segregation of Duties and Explain How It Benefits Internal