Which is not a key segregation of duties for the revenue process? Different parties should:
A)prepare shipping orders and prepare bills of lading.
B)perform the credit and billing functions.
C)perform the shipping and billing functions.
D)receive cash and adjust accounts receivable.

Question

Quizplus · Accepted Answer

A key segregation of duties in the revenue process is to separate the tasks of preparing shipping orders and preparing bills of lading. This helps to prevent errors or fraud related to shipping and billing. However, in option A, both tasks are assigned to the same party which is contrary to the segregation of duties principle. Therefore, A is the answer.

Options B, C, and D all involve separating different tasks related to the revenue process, which align with the key segregation of duties principle. For example, performing credit and billing functions or separating the tasks of shipping and billing can help to prevent errors and fraud. Similarly, receiving cash and adjusting accounts receivable should be assigned to different parties to ensure that the cash is properly recorded and accounted for.

Which Is Not a Key Segregation of Duties for the Revenue