PDA

View Full Version : Persons Performing AP and AR


cnjones20
Jun 4, 2008, 01:08 PM
What are the implications of having the same person performing accounts payable and accounts receivable functions?

Thank you so much, I am having a hard time finding this:)

Curlyben
Jun 4, 2008, 01:38 PM
This contravenes SOX 404 and segregation of duties.
These functions MUST be separate to ensure transparency and security of the accounts.

Sues Lab
Jun 5, 2008, 12:09 PM
What are the implications of having the same person performing accounts payable and accounts receivable functions?

Thank you so much, I am having a hard time finding this:)
Not understanding your question, are you doing both of these?

morgaine300
Jun 5, 2008, 08:48 PM
Sues Lab, it's a typical homework question. Also meaning the poster should be attempting to answer their own work first instead of having us do it for them.

It's in a chapter somewhere that is introducing some internal control concepts, so that's what the "implications" are -- about internal controls.

delite
Jun 5, 2008, 09:10 PM
What are the implications of having the same person performing accounts payable and accounts receivable functions?

Thank you so much, I am having a hard time finding this:)

There is no separation of duties in an area where the company derives its prime cash flow,one person in charge can manipulate the receivables and liabilities in a format they if they wished and left unchecked can result in serious fraud situations wherein money is not accounted for. NEED internal controls.