Final answer:
The property, plant, and equipment records function should be segregated from the custodial function.
Step-by-step explanation:
The statement is true, the property, plant, and equipment records function should be segregated from the custodial function.
Segregation of duties is a fundamental principle in accounting and internal control systems. By separating the recordkeeping and custodial functions, a company can reduce the risk of fraud, errors, and conflicts of interest.
For example, in a manufacturing company, the plant manager who has control over the physical assets should not be responsible for recording transactions related to those assets. This separation helps ensure the accuracy and integrity of financial statements.