Which is not a key segregation of duties for the revenue process? different parties should:
Skip to Content
Show
Strong internal controls are necessary to prevent mishandling of funds and safeguard assets. They protect both the University and the employees handling the cash. No one person should be allowed to
collect, handle or transport and deposit checks/currency without some additional control feature to ensure that all funds are accounted for. Examples of such controls are as follows: Related SU
policy: Gift Acceptance Policy Fees and other Revenues LinkUse an accounts receivable account to process billing and collection for routine revenue activities. If you are unsure if a cash receipt should be recorded as revenue or an offset to an expense, contact General Accounting in the Comptroller’s Office for assistance. Internal controls surrounding this type of activity include:
Related SU policy: Revenue from Transactions with External Parties Bank Accounts LinkThe opening of any University bank account requires proper approval.
Related SU policy: Bank Accounts What are the three segregation of duties?Segregation of Duties. Authorization or approval.. Custody of assets.. Recording transactions.. Reconciliation/Control Activity.. Which of these accounting duties should be segregated?Segregation of duties involves separating three main functions and having them conducted by different employees: Having custody of assets. Being able to authorize the use of assets. Recordkeeping of assets.
What happens when there is no segregation of duties?Inadequate segregations of duties could make fraud prevention, detection and investigation difficult, which could possibly lead to misstated financial statements, regulatory punishments, damage to the company's reputation and reduced investor trust.
What is segregation of duties in auditing?Segregation of Duties (SOD) Segregation of Duties (SOD) is a basic building block of sustainable risk management and internal controls for a business. The principle of SOD is based on shared responsibilities of a key process that disperses the critical functions of that process to more than one person or department.
|