Final answer:
The accounts receivable department manager (option b) should report to the controller, according to the principle of segregation of duties, to ensure proper internal controls and reduce the risk of fraud.
Step-by-step explanation:
According to the concept of segregation of duties, the manager who should report to the controller rather than to the treasurer is the b. accounts receivable department manager. To reduce the risk of errors or fraud within a company, the principle of segregation of duties aims to separate the responsibilities within financial transactions and accounting to promote accuracy and integrity.
The controller typically is in charge of the accounting functions, which includes overseeing accounts receivable, to ensure accurate financial reporting. The treasurer, on the other hand, deals with the company's cash and financial investments, which would include supervising the cashier and investments manager. Therefore, the accounts receivable department manager should report to the controller to maintain proper internal control.