1. SEGREGATION OF FUNCTIONS to the AR department, which adjusts the customer accounts to reflect the return. Which, if any, of the following situations represents improper segregation of functions? Explain your answer. a. The billing department prepares the customers' invoices and records the sale in the sales journal. b. Mail room clerk opens cash receipts envelopes from customers and also prepares the remittance list. c. Accounting clerk receives journal vouchers from various departments and also posts to the GL accounts. d. The sales department approves sales credit memos as the result of product returns and forwards these
1. SEGREGATION OF FUNCTIONS to the AR department, which adjusts the customer accounts to reflect the return. Which, if any, of the following situations represents improper segregation of functions? Explain your answer. a. The billing department prepares the customers' invoices and records the sale in the sales journal. b. Mail room clerk opens cash receipts envelopes from customers and also prepares the remittance list. c. Accounting clerk receives journal vouchers from various departments and also posts to the GL accounts. d. The sales department approves sales credit memos as the result of product returns and forwards these
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 5MC: There are several elements to internal controls. Which of the following would not address the issue...
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Transcribed Image Text:1. SEGREGATION OF FUNCTIONS
to the AR department, which adjusts the customer
Which, if any, of the following situations represents
improper segregation of functions? Explain your
accounts to reflect the return.
answer.
a. The billing department prepares the customers'
invoices and records the sale in the sales
journal.
b. Mail room clerk opens cash receipts envelopes
from customers and also prepares the remittance
list.
c. Accounting clerk receives journal vouchers from
various departments and also posts to the GL
accounts.
d. The sales department approves sales credit memos
as the result of product returns and forwards these
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