Proper segregation of functional responsibilities calls for separation of the functions of:
A)Authorization, execution, and payment
B)Authorization, recording, and custody
C)Custody, execution, and reporting
D)Authorization, payment, and recording

Question

Quizplus · Accepted Answer

Segregation of functional responsibilities requires separation of the functions of authorization, recording, and custody. Payment is not included as a separate function because it is a result of the authorized transaction and should be made only after the proper authorization and record-keeping is done. Execution is also not included as a separate function because it is generally a part of custody or recording. Therefore, option B is the best choice.

Proper Segregation of Functional Responsibilities Calls for Separation of the Functions