The purpose of segregating the duties of distributing payroll checks and hiring personnel is to separate the
A) Duties within the accounting function.
B) Custody of assets from the accounting for those assets.
C) Authorization of transactions from the custody of related assets.
D) Operational responsibility from record keeping responsibility.

Question

Quizplus · Accepted Answer

Segregating the duties of distributing payroll checks and hiring personnel ensures that the authorization of transactions (hiring personnel) is separated from the custody of related assets (payroll checks). This helps to prevent fraud or errors, as no single individual has complete control over the entire process.

The Purpose of Segregating the Duties of Distributing Payroll Checks