Segregation of duties is an important concept in internal control. However, segregation of duties is often a challenge for smaller businesses because they do not have sufficient staff to segregate duties. Normally, the segregation of duties identified below results in either a significant deficiency or a material weakness in internal control.
For each “segregation of duties: problem identified here:
WRITE THIS ESSAY FOR ME
Tell us about your assignment and we will find the best writer for your paper.
Get Help Now!a. Identify the risk to financial reporting that is associated with the inadequacy of the segregation of duties.
b. Identify other controls that might mitigate the segregation of duties risks.
c. If a control is identified that would mitigate the risks, briefly indicate what evidence the auditor would need to gather to determine that the control is operating effectively.
Situations
1. The same individual handles cash receipts, the bank reconciliation, and customer complaints.
2. The same person prepares billings to customers and also collects cash receipts and applies them to customer accounts.
3. The person who prepares billings to customers does not handle cash, but does the monthly bank reconciliation, which, in turn, is reviewed by the controller.
4. A start-up company has very few transactions, less than $1 million in revenue each year, and has only one accounting person. The company’s transactions are not complex.
5. The company has one computer person who is responsible for running packaged software. The individual has access to the computer to update software and can also access records.
Introducing our Online Essay Writing Services Agency, where you can confidently place orders for a wide range of academic assignments. Our reputable homework writing company specializes in crafting essays, term papers, research papers, capstone projects, movie reviews, presentations, annotated bibliographies, reaction papers, research proposals, discussions, and various other assignments. Rest assured, our content is guaranteed to be 100% original, as every piece is meticulously written from scratch. Say goodbye to concerns about plagiarism and trust us to deliver authentic and high-quality work.
WRITE MY ESSAY NOW
