Duties in the expenditure cycle should be properly segregated to promote internal control.This means that the authorization function is performed by ________,the recording function is performed by ________,and cash handling is performed by the ________.

Question

Quizplus · Accepted Answer

In the expenditure cycle, authorization function should be performed by purchasing department to ensure that purchases are made only when approved by authorized personnel. Recording function should be performed by accounts payable department to ensure that all transactions are properly recorded and authorized. Cash handling function should be performed by the cashier to ensure that cash and checks are received, deposited and disbursed properly. Therefore, choice B is the correct option where purchasing performs the authorization function, accounts payable performs the recording function, and cashier performs the cash handling function.

Duties in the Expenditure Cycle Should Be Properly Segregated to Promote