Separate authorization of transactions from custody of related assets. Wherever possible, persons who authorize transactions should be
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Wherever possible, persons who authorize transactions should be prevented from controlling the related asset.
Examples of inadequate separation of duties include:
- An invoice transaction authorizer who is also responsible for handling checks.
- A transaction authorizer of student financial aid refunds who is also responsible for distributing refund checks to students.
- A cashier who can also void transactions without further approval.
- A transaction inputter who adds newly hired employees to the Payroll-Personnel System and who is also responsible for distributing payroll checks.
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