What departments should be segregated in the revenue cycle at a company?
In order for proper segregation of duties to exist in a company’s revenue cycle, the company should segregate the sales department, the credit approval department, the shipping department, and the billing department.
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What functions should be separated for proper segregation of duties to exist?
For proper segregation of duties (SOD) to exist, the company should ensure that an individual employee does not have access to more than one responsibility that relates to authorization, record keeping or custody of assets. For example, an employee should not have the ability to write checks and also record cash disbursements in the accounting...
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What duties should be segregated in an IT department?
The nature and roles of each individual in an IT department will vary, so it’s important to understand the specific role each IT person has in the broader IT function. At a very high level, roles and access should be outlined clearly so that an individual does not have the ability to implement a system...
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How to prevent a fictitious employee from being paid?
This is a key risk for any company and the best way to prevent this risk is to have proper segregation of duties. What this means is that you should separate the approval process for hiring employees, the accounting process for paying employees, and the actual person that distributes paychecks to employees. As long as...
What functions should be separated for proper segregation of duties to exist?
For proper segregation of duties (SOD) to exist, the company should ensure that an individual employee does not have access to more than one responsibility that relates to authorization, record keeping or custody of assets. For example, an employee should not have the ability to write checks and also record cash disbursements in the accounting...
What duties should be segregated in an IT department?
The nature and roles of each individual in an IT department will vary, so it’s important to understand the specific role each IT person has in the broader IT function. At a very high level, roles and access should be outlined clearly so that an individual does not have the ability to implement a system...
How to prevent a fictitious employee from being paid?
This is a key risk for any company and the best way to prevent this risk is to have proper segregation of duties. What this means is that you should separate the approval process for hiring employees, the accounting process for paying employees, and the actual person that distributes paychecks to employees. As long as...
