In the performance of which transaction(s) does segregation of duties serve as an important internal control?
A)Cash receipts, not credit sales
B)Credit sales, not cash receipts
C)Both cash receipts and credit sales
D)None of these answer choices are correct.

Question

Quizplus · Accepted Answer

Segregation of duties is an important internal control for both cash receipts and credit sales. This means that different individuals should handle the different aspects of these transactions, such as receiving, recording, and depositing cash or approving, processing, and recording credit sales. This helps to prevent fraud or errors from occurring, as no single individual has complete control over the transaction.

In the Performance of Which Transaction(s) Does Segregation of Duties