The category of control activities referred to as segregation of duties requires that certain activities should be the responsibility of different person or department.The three duties that are to be separated are:
A)Authorizing, recording, and paying
B)Recording, custody, and disposition
C)Authorizing, paying, and custody
D)Authorizing, recording, and custody

Question

Quizplus · Accepted Answer

Segregation of duties requires that the functions of authorizing, recording, and custody should be separated to avoid fraud or errors in financial transactions. Paying can be included with authorization or custody, but it should not be combined with recording to ensure proper accountability. Therefore, option D is the correct choice.

The Category of Control Activities Referred to as Segregation of Duties