The purpose of segregating the duties of hiring personnel and distributing payroll checks is to separate (a) the authorization of transactions from the custody-related assets.
Separation of Functions (SOD) A fundamental component of effective risk management and internal corporate controls is segregation of duties (SOD). The foundation of the SOD principle is shared accountability for a crucial process, which distributes its essential tasks to multiple parties or departments.
Examples of segregating tasks include Checks shouldn't be in the hands of the person who manages and reconciles the accounting records. It is not recommended that the person who opens the mail and creates a list of the checks received also makes the deposit.
Full Question :The purpose of segregating the duties of hiring personnel and distributing payroll checks is to separate the:
a. authorization of transactions from the custody of related assets.
b. operational responsibility from the recordkeeping responsibility.
c. human resources function from the controllership function.
d. administrative controls from the internal accounting controls.