Question

Proper segregation of duties calls for separation of the functions of:

a)authorization, execution, and payment
b)authorization, recording, and custody
c) custody, execution, and reporting
d)authorization, payment, and recording

Answer 1

Proper segregation of duties in business involves separating functions to ensure checks and balances and minimize risk of fraud or errors.

Step-by-step explanation:

The proper segregation of duties in a business context refers to the separation of different functions to ensure checks and balances and minimize the risk of fraud or errors. In this case, the answer would be option b)authorization, recording, and custody. Authorization involves approving transactions, recording involves documenting the transactions accurately, and custody involves taking physical control and safekeeping of the assets or documents.