The purpose of segregating the duties of distributing payroll checks and hiring personnel is to separate the:
A)duties within the accounting function.
B)custody of assets from the accounting for those assets.
C)authorization of transactions from the custody of related assets.
D)operational responsibility from record keeping responsibility.

Question

Quizplus · Accepted Answer

Segregating the duties of distributing payroll checks and hiring personnel is an example of segregation of duties where the authorization of the transaction (hiring personnel) is separated from the custody of related assets (payroll checks). This helps to prevent fraud, errors, and misappropriation of assets by ensuring that different individuals or departments are responsible for different aspects of a transaction or process.

The Purpose of Segregating the Duties of Distributing Payroll Checks