Answer to Question #320040 in Finance for Jen

Question

Explain the association of the following diagram (hints: the association has directions; from sales order to customers, and from customers to sales orders)?

What is segregation of duties and why internal controls need segregation of duties?

Answer 1

This is a major internal control and it is very important in organization as it ensures that no employee or manager can be involved in fraud in the course of their duty and it also helps in minimizing errors.