What functions should be separated to segregate record keeping from asset custody?
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Which functions need to be separated in the segregation of duties control?Segregation of duties involves separating three main functions and having them conducted by different employees: Having custody of assets. Being able to authorize the use of assets. Recordkeeping of assets.
Which function should be segregated?Generally, the primary incompatible duties that need to be segregated are: Authorization or approval. Custody of assets. Recording transactions.
What accounting duties should be separated?Separation of duties is the means by which no one person has sole control over the lifespan of a transaction. Ideally, no one person should be able to initiate, record, authorize and reconcile a transaction.
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