In terms of segregation of duties, related buying activities include
A) ordering, receiving, paying.
B) ordering, selling, paying.
C) ordering, shipping, billing.
D) selling, shipping, paying.

Question

Quizplus · Accepted Answer

Segregation of duties is a key internal control that prevents fraud and errors. This principle dictates that no single employee should be responsible for all phases of a transaction to prevent conflicts of interest and errors. In the context of buying activities, ordering (placing orders for goods or services), receiving (accepting delivery of ordered goods), and paying (processing payment for received goods) are closely related activities that should be segregated among different employees to ensure checks and balances.

In Terms of Segregation of Duties, Related Buying Activities Include