Proper separation of duties involves authorization of purchases by persons who do not have custody,recording,or reconciliation duties.

Question

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Proper separation of duties is an important internal control to prevent fraud and errors. Authorization of purchases should be done by individuals who do not have custody, recording, or reconciliation duties to ensure that there are checks and balances in the process. This helps to reduce the risk of mistakes or intentional misappropriation of company resources.

Proper Separation of Duties Involves Authorization of Purchases by Persons