Final answer:
Specific jobs that should be segregated in a cash disbursements system include authorization of payment, record keeping, custody of cash, and reconciliation. This segregation helps prevent errors and fraud, ensuring the integrity of financial processes.
Step-by-step explanation:
The cash disbursements system in a company serves to manage how cash is paid out and includes several roles that should be segregated to prevent fraud and to ensure accurate and reliable financial processes. Specific jobs that should be segregated include the following:
- Authorization of payment: This role involves approving transactions and expenditures to ensure they are legitimate and within company policy.
- Record keeping: Individuals in this role maintain the accounts payable ledger and reconcile bank statements, keeping an accurate track of all disbursements.
- Custody of cash: Those responsible for handling the actual cash, cheques or initiating electronic fund transfers should not be involved in authorization or record keeping to prevent misuse of funds.
- Reconciliation: A separate person should be tasked with comparing the recorded cash disbursements with the actual bank statements to catch any irregularities.
By keeping these roles separate, businesses can reduce the risk of errors and fraud, thereby enhancing the integrity of their cash disbursement system.