A note from Sary

Accountants and finance professionals rely on a system called Segregation of Duties to prevent all sorts of shady activities. The system, which is intended to reduce cases of fraud and theft, limits a single persons abiliny to complete the following business processes: 1. Auchorization: reviewing, approving, or overseeing a Transaction. 2 Custody: receiving, accessing, or controlling any assets related to that Transaction. 3 Record keeping: creating and storing accounting records related to each Transaction. 4 Reconciliation: verifving that two sets of records, like internal company Transaction records and external bank statements, match with respect to timing and amount.

Sary The Personal MBA, page 199 · November 3, 2023 Save to shelf
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