Which, if any, of the following situations represent improper segregation of functions?a. The billing department prepares the customers’ invoices, and the accounts receivable department posts to the customers’ accounts.b. The sales department approves sales credit memos as the result of product returns, and subsequent adjustments to the customer accounts are performed by the accounts receivable department.c. The shipping department ships goods that have been retrieved from stock by warehouse personnel.d. The general accounting department posts to the general ledger accounts after receiving journal vouchers that are prepared by the billing department.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Which, if any, of the following situations represent improper segregation of functions?
a. The billing department prepares the customers’ invoices, and the accounts receivable department posts to the customers’ accounts.
b. The sales department approves sales credit memos as the result of product returns, and subsequent adjustments to the customer accounts are performed by the accounts receivable department.
c. The shipping department ships goods that have been retrieved from stock by warehouse personnel.
d. The general accounting department posts to the general ledger accounts after receiving journal vouchers that are prepared by the billing department.

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