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on Nov 14, 2024
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An example of segregation of duties is having a cheque signer record cash disbursements.
Segregation of Duties
An internal control mechanism designed to reduce the risk of error or fraud by dividing responsibilities among different people in an organization.
Cheque Signer
An authorized individual within an organization who has been given the authority to sign checks on behalf of the company.
- Identify the significance of compartmentalizing duties and its contribution to preventing fraudulent activities and errors in financial documentation.
- Know the best practices for managing and documenting cash transactions to maintain effective control.
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Learning Objectives
- Identify the significance of compartmentalizing duties and its contribution to preventing fraudulent activities and errors in financial documentation.
- Know the best practices for managing and documenting cash transactions to maintain effective control.
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