Why duties are split between people
No one person should handle a transaction from start to finish. See which jobs are kept apart and what the split catches.
Task 1No one does the whole job3 questions
Segregation of duties means splitting a job so that no one person handles a transaction from start to finish.
- Authorising
- agreeing that a payment or an order may go ahead
- Recording
- entering the transaction in the books
- Custody
- handling the money or the goods
- Checking
- comparing the records with the facts, as a bank reconciliation does
Where the business is big enough, each of the four sits with a different person.
Task 2What the split catches4 questions
Task 3When the business is too small to split2 questions