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Problem on segregate of duty
AUD - Heavily tested topic
Beckers CD for Audit
regarding scope limitation
question on internal question
I am preparing AUD now
Returning those undistributed checks to the payroll dept. (a record keeping function) would be considered an ineffective SOD. Since a record keeping function should not have custody of undistributed checks, employees not involved in the payroll or human resources function should maintain custody as well as investigate and reconcile the returned payroll checks.
Pay roll department authorizes payroll. They can not have custody of those cheques. It contradict the concept of ARC. Payroll department can not authorize and have custody of same cheques.
It should be give to any independent person other than parties who have ARC functions.
Going over a Becker MCQ concerning segregation of duties. Please let me know if you have a correct answer.
If a payroll clerk distrubutes signed payroll checks, and there are checks left undistributed... why is it not ok to return these checks to the payroll dept?
In a real life scenario, who would take the unclaimed checks?
How important are the flow charts for exam point of view?especially financing and investing transaction cycles?
I'm right there with you Myra, this is some boring stuff! I'm sitting for the exam on the 29th so I am in "crunch week". I am finding that for me working through the MQs and Sims are the best way to solidify the concepts with AUD. For the MQs especially I have been trying to analyze all the answer choices and determining why they are correct or incorrect. Its those darn tricky little details that should be more obvious but aren't!! To liven things up I switch between book MQs and Wiley Test Bank. I have declared today to be SIM day. Nothing but Sims, sun up to sun down. Good Luck!
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