One basic but critical component of internal controls for cash management is of duties.

Question

Giovani Lane

Business

27 October, 16:14

One basic but critical component of internal controls for cash management is of duties.

+4

Answers (1)

Know the Answer?

Salvador Benitez · Answer 1

The segregation of duties is the important component. This makes sure that each person has a specific action to undertake and ensures that the finances are being handled properly and securely. It ensures that each person is responsible for one part of the cash-handling chain and that, if there is a breakdown from one person to the next, there is a definite place to look to see who is guilty of the loss of funds.