The Sample - What Is Segregation of Duties?

In this episode of THE SAMPLE Leita Hart-Fanta shares examples that show clearly what segregation of duties is not. What is segregation of duties?
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Welcome to The Sample, a quick discussion of auditing concepts and terms that will help you do your work. Conducting an audit in accordance with auditing standards is no small feat and I want to support you. We'll be referring to the GAO (https://www.gao.gov), IIA (https://na.theiia.org/Pages/IIAHome.aspx) and AICPA (https://www.aicpa.org) literature to bolster our conversations. Let's get started.

Well, I think it's going to help by showing you what it is not. I think it'll be very clear what segregation of duties is not when I show you this example. So, let's say that we are trying to make sure that cash collected on Sundays at church gets into the bank. And we have a bookkeeper named Marsha and she counts the contents of the baskets. And that she prepares a deposit, and she notifies the pastor of the amount collected, and she puts the cash and the checks in a zippered vinyl envelope and takes it home so that she can put it in the bank on Monday morning. She records a deposit in the general ledger. She reconciles cash to the bank balance and the general ledger every month. And then she reports on the financial status to the board of elders each quarter. Uh oh. Marsha, Marsha, Marsha. There's too much Marsha in that process!

Read the rest at: https://yellowbook-cpe.com/what-is-se...
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