Proper segregation of duties in the purchases,payables and payments cycle would be to have ________.
A)the accounting department independent of the sales department
B)the purchasing department independent of the receiving department
C)the information systems department independent of the accounting department
D)the sales department independent of the shipping department

Question

Quizplus · Accepted Answer

Proper segregation of duties in the purchases, payables and payments cycle would involve having the purchasing department independent of the receiving department. This ensures that there is no opportunity for collusion between the two departments in terms of overbilling, paying for undelivered goods or services, or siphoning off funds. Additionally, having separate departments with their own checks and balances helps to prevent errors and irregularities from occurring. The independence of the accounting and information systems departments are also important, but they are not directly related to the segregation of duties in this particular cycle. The sales department and shipping department are part of a different cycle and do not directly relate to purchases, payables, and payments.

Proper Segregation of Duties in the Purchases,payables and Payments Cycle