It is difficult to independently validate the vendor invoice if we do not segregate purchasing, receiving, and accounts payable.

Question

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Segregation of duties is a key internal control to prevent errors and fraud. Without separating the functions of purchasing, receiving, and accounts payable, there is a risk that invoices could be paid without proper verification or approval, which could lead to errors or fraud in the financial statements. By separating these functions, it becomes easier to validate invoices and prevent errors or fraud.

It Is Difficult to Independently Validate the Vendor Invoice If