Question

WOTF tasks should be segregated?

A. Matching POs, receiving reports, and invoices and authorizing payment
B. Authorizing payment and posting the check register
C. Writing checks and posting to the check register
D. Authorizing payment and posting to the accounts payable subsidiary ledger
E. None of the above need to be separated

Answer 1

Certain tasks should be segregated to ensure proper internal controls and reduce the risk of fraud or errors.

Step-by-step explanation:

In order to ensure proper segregation of duties and internal controls, certain tasks should be segregated.

The correct answer is option D: Authorizing payment and posting to the accounts payable subsidiary ledger.

By segregating the tasks of authorizing payment and posting to the accounts payable subsidiary ledger, there is a clear separation of duties, reducing the risk of fraud or errors. This separation ensures that the authorization of payments is independent from the recording of those payments, providing a strong internal control mechanism.