Why is it important to have segregation of duty between the Accountant responsible for student accounts receivables and supervising the cashier’s function ie checking and depositing cash etc
Separating duties by different types of processes achieves:
- an increase in the productivity of the processes in a business cycle
- reduces clerical errors since such errors would be detected in the following process
- and eliminates the possibility of fraudulent transaction due to the separation of the duties.
In non-accounting terms:
- you do not want the fox guarding the hen house.
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