To maintain adequate separation of functions,accounts receivable should not have access to
A) cash received from customers.
B) checks received from customers.
C) invoices and credit memos.
D) Answers A and B are both correct.

Question

Quizplus · Accepted Answer

Accounts receivable should not have access to cash and checks received from customers as it creates a conflict of interest and increases the risk of fraud. Additionally, they should not have access to invoices and credit memos as it may allow them to manipulate or alter the records. By maintaining adequate separation of functions, it ensures that different individuals or departments are responsible for each step in the process, which reduces the risk of errors and fraudulent activities. Therefore, the best choice is D, as both options A and B are correct.

To Maintain Adequate Separation of Functions,accounts Receivable Should Not Have