One important aspect of internal control is the segregation of duties, which makes certain types of fraud difficult or impossible to commit (unless there is collusion or management override). Proper separation of duties would prevent a single individual from having responsibility for two or more "incompatible" functions. In general, these functions, as described in class, include: OA Authorization of transactions, Replacement of assets, Confirmation (comparison and reconciliation) of recorded amounts to physical resources, Closing of the month's financial data OB. Authentication of transactions, Responsibility for assets, Clearance of transactions, Closing of the month's financial data. OC. Appropriation of assets, Recording of the transactions, Custody of any resources related to the transactions, Clearance of transactions. OD. Authorization of transactions, Recording of the transactions, Custody of any resources related to the transactions, Confirmation (comparison and reconciliation) of recorded amounts to physical resources.
One important aspect of internal control is the segregation of duties, which makes certain types of fraud difficult or impossible to commit (unless there is collusion or management override). Proper separation of duties would prevent a single individual from having responsibility for two or more "incompatible" functions. In general, these functions, as described in class, include: OA Authorization of transactions, Replacement of assets, Confirmation (comparison and reconciliation) of recorded amounts to physical resources, Closing of the month's financial data OB. Authentication of transactions, Responsibility for assets, Clearance of transactions, Closing of the month's financial data. OC. Appropriation of assets, Recording of the transactions, Custody of any resources related to the transactions, Clearance of transactions. OD. Authorization of transactions, Recording of the transactions, Custody of any resources related to the transactions, Confirmation (comparison and reconciliation) of recorded amounts to physical resources.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:One important aspect of internal control is the segregation of duties, which makes certain types of fraud difficult or impossible to commit (unless there is collusion or management override). Proper
separation of duties would prevent a single individual from having responsibility for two or more "incompatible" functions. In general, these functions, as described in class, include:
GHED
OA Authorization of transactions, Replacement of assets, Confirmation (comparison and reconciliation) of recorded amounts to physical resources, Closing of the month's financial data
OB. Authentication of transactions, Responsibility for assets, Clearance of transactions, Closing of the month's financial data.
OC. Appropriation of assets, Recording of the transactions, Custody of any resources related to the transactions, Clearance of transactions.
Ob. Authorization of transactions, Recording of the transactions, Custody of any resources related to the transactions, Confirmation (comparison and reconciliation) of recorded amounts to
physical resources.
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