CAF-8 · Chapter 5 · Question 2 of 10
A client separates the duties of the person handling physical cash receipts from the person recording the cash entries in the ledger. What is the primary purpose of this control?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) To reduce the likelihood of an employee being able to both commit and conceal a fraud or error.
Explanation
Segregation of duties separates custody, authorization, and recording functions to minimize the risk that one person can steal an asset and hide the theft in the records.
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