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  • 1.  Segeriation of Duties

    Posted 02-08-2017 03:51 AM
    An accounting associate sets up a new employee in the payroll system and directs the checks to be sent to a post office box. What two duties does this employee have that are incompatible?

    a. Authorization and recordkeeping.
    b. Custody and recordkeeping.
    c. Custody and reconciliation.
    d. Reconciliation and authorization
     
    The right answer is (a), anybody can help explain?

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    Ali Mansour
    Accountant
    hayco Travel
    Giza
    Egypt
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  • 2.  RE: Segeriation of Duties

    Posted 02-09-2017 06:21 AM

    First, I would ask, has anyone seen this individual? In what section, department, location have they been employed?

     

    The processes for adding people to payroll should come from HR (or the body carrying out this function). The authority on where the individual's pay is to be deposited must only come from the individual (in written form signed) evidenced by an equivalent of a 'void check' with its signature

     

    An added control for the organisation would be monthly 'head count report' by detail (dept. location etc) with a recap of leavers, new employees arriving at the total of the current headcount. A wide distribution should be encouraged.

     

    Cliff Moggs






  • 3.  RE: Segeriation of Duties

    Posted 02-11-2017 03:32 AM
    Because he is an accountant he is already practicing record keeping duties, simultaneously he has the authority to assign a new employee which they are duties that should be segregated. do you agree with me!!

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    Ali Mansour
    Accountant
    hayco Travel
    Giza
    Egypt
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  • 4.  RE: Segeriation of Duties

    Posted 02-11-2017 09:18 AM
    The answer is NO. The fact that they are 'already' an accounant is an irrelevance. Who is designated with the authority  to put any one on to the payroll performs this duty .And where should the instruction, seperation of duties, for directing the deposit of the paycheck. These two seperate responsiblities should never be from one person

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    Clifford Moggs CMA
    Consultant
    Reading
    United Kingdom
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