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Unformatted text preview: 11-4 Segregation of DutiesPossible Errors or Fraud as aResult of Conflicts in DutiesThe purchasing function should be segregated from the requisitioning and receiving functions.Theft of goods and possible payment for unauthorized purchases.The invoice-processing function should be segregated from the accounts payable function.Overpayment for goods and services or theft of cash.The disbursement function should be segregated from the accounts payable function.Theft of cash.The accounts payable function should be segregated from the general ledger function.A defalcation that would normally be detected by reconciling subsidiary records with the general ledger control account.11-28 Taylor should perform the following additional substantive audit procedures:•Foot the client-prepared schedule.•Agree the general ledger accounts payable control account to the client-prepared accounts payable schedule....
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This note was uploaded on 12/19/2009 for the course ACCT 3222 taught by Professor Delaune,l during the Spring '08 term at LSU.
- Spring '08