Segregation of duties is an important part of the internal control system. Segregation of duties should be done by dividing responsibilities in such a way that each individualshould perform an only single task, or controls only one controlled activity among different phases of a transaction. The main aim of segregation of duties is to help detection of misstatements. The weaknesses in internal control using the given narrative and the flowchart.

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Chapter 12, Problem 12.25P

a

To determine

Introduction: Segregation of duties is an important part of the internal control system. Segregation of duties should be done by dividing responsibilities in such a way that each individualshould perform an only single task, or controls only one controlled activity among different phases of a transaction. The main aim of segregation of duties is to help detection of misstatements.

The weaknesses in internal control using the given narrative and the flowchart.

b

To determine

Introduction: Segregation of duties is a very important part of the internal control system. Segregation of duties should be done by dividing responsibilities in such a way that each individual should perform an only single task or controls only one controlled activity among different phases of a transaction, the main aim of segregation of duties is to help detection of misstatements.

The inquiries should be made to clarify possible additional weaknesses in internal control.

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