Final answer:
All listed segregation of duties are necessary for effective control in the B/AR/CR process. These segregations include price authorization separate from billing, treasury functions separate from controllership, and bank reconciliation distinct from cash receipts handling.
Step-by-step explanation:
The segregation of duties is a fundamental concept in internal control processes within an organization, especially in the financial and accounting spheres. When considering the B/AR/CR (Billing/Accounts Receivable/Cash Receipts) business process, segregation of duties ensures that no single individual has control over all aspects of any financial transaction. This prevents errors and fraud.
For the duties listed:
- Price authorization and billing - Typically, the person who authorizes the price should not be the same person who does the billing to prevent unauthorized pricing.
- Treasury and controllership - To prevent embezzlement or misstatement of financial reports, the person in charge of the treasury (handling actual funds) should not be the same as the controller (who is responsible for financial reporting).
- Bank reconciliation and cash receipts - The person responsible for bank reconciliation should not be the one recording cash receipts. This segregation helps uncover discrepancies in cash flows and prevent theft.
Given the importance of each of these segregation practices to prevent conflict of interest and fraud, the answer is d. all of these are required for effective control.