For good internal control an organization should segregate the duties of:
A) HR and payroll
B) AP and payroll
C) payroll and cashier
D) all of the above

Question

Quizplus · Accepted Answer

Segregating duties is a key principle of internal control to prevent fraud and errors. This includes separating responsibilities among different employees or departments to ensure no single individual has control over all aspects of any financial transaction. HR and payroll should be separated to prevent conflicts of interest and ensure confidentiality. Accounts Payable (AP) and payroll segregation prevents the same person from managing vendor payments and employee salaries, reducing the risk of misappropriation of funds. Separating payroll and cashier duties ensures that the person handling company cash is not the same person calculating or distributing paychecks, further reducing the risk of theft or fraud. Therefore, all the options provided (A, B, C) are correct, making D the correct choice.

For Good Internal Control an Organization Should Segregate the Duties