Question

________ of duties is essential for safeguarding assets. The person who has custody of an asset should not also account for the asset. A person who performs both duties can steal the asset and hide the theft by making a bogus entry in the accounting records.

a) Segregation

b) Authorization

c) Verification

d) Documentation

Answer 1

Segregation of duties is essential for safeguarding assets by separating custody and accounting responsibilities.

Step-by-step explanation:

Segregation of duties is essential for safeguarding assets. It involves separating the custody and accounting responsibilities for an asset. This prevents an individual from having both access to an asset and the ability to manipulate the accounting records to conceal theft.