This sample questionnaire provides key considerations for segregating duties during the cash disbursement process.
A fundamental element of internal control is the segregation of certain key duties. The basic idea underlying segregation of duties is that no employee or group should be able to both perpetrate and conceal errors or fraud in the normal course of their duties. In general, the principal incompatible duties to be segregated are the custody of assets, the authorization or approval of related transactions affecting those assets, and the recording or reporting of related transactions.