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:)

This contravenes SOX 404 and segregation of duties.
These functions MUST be separate to ensure transparency and security of the accounts.

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Originally Posted by cnjones20

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:)

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Not understanding your question, are you doing both of these?

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.

Quote:

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Originally Posted by cnjones20

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:)

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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.