Segregation of duties requires that different individuals be assigned responsibility for different e

Segregation of duties requires that different individuals be assigned responsibility for different e

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Segregation of duties  requires that different individuals be assigned responsibility  for different elements of related activities, particularly those involving authorization, custody,  or recordkeeping. For example, the same person who is responsible for an asset's  recordkeeping should not be respon sible for physical control of that asset Having different  indi viduals perform these functions creates a system of checks and balances.  Proper authorization  of transactions and activities helps ensure that all company  activities adhere to established guide lines unless responsible managers authorize another  course of action. For example, a fixed price list may serve as an official authorization of  price for a large sales staff. In addition, there may be a control to allow a sales manager to  authorize reason able deviations from the price list.  Adequate documents and records
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