Discuss whether the following situations are improper segregation functions. Support your answer with reasonable grounds. A. The purchasing department prepares the customer’s invoice and the accounts receivable department sends it to the customer’s account. B. The sales department approves the sales credit memo upon product return, and payment on the customer’s account is made by the accounts receivable department. C. The shipping department sends the goods that have been picked up from the warehouse by the warehouse staff. D. The general accounting department posts to the general ledger account after receiving the journal voucher provided by the billing department E. The human resources department appoints employees and also pays employees ’salaries
Discuss whether the following situations are improper segregation functions. Support your answer with reasonable grounds. A. The purchasing department prepares the customer’s invoice and the accounts receivable department sends it to the customer’s account. B. The sales department approves the sales credit memo upon product return, and payment on the customer’s account is made by the accounts receivable department. C. The shipping department sends the goods that have been picked up from the warehouse by the warehouse staff. D. The general accounting department posts to the general ledger account after receiving the journal voucher provided by the billing department E. The human resources department appoints employees and also pays employees ’salaries
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Discuss whether the following situations are improper segregation functions. Support your answer with reasonable grounds.
A. The purchasing department prepares the customer’s invoice and the accounts receivable department sends it to the customer’s account.
B. The sales department approves the sales credit memo upon product return, and payment on the customer’s account is made by the accounts receivable department.
C. The shipping department sends the goods that have been picked up from the warehouse by the warehouse staff.
D. The general accounting department posts to the general ledger account after receiving the journal voucher provided by the billing department
E. The human resources department appoints employees and also pays employees ’salaries
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