Having one person post entries to accounts receivable subsidiary ledger and a different person post to the accounts receivable control account in the general ledger is an example of Segregation of duties.
When using a subsidiary ledger the accounts receivable account in the general ledger is called the?
- The account balances of subsidiary ledgers are recorded in control accounts, also referred to as master accounts in general ledgers.
- For each client that purchases things on credit, a separate account is added to the customers' subsidiary ledger (accounts receivable subsidiary ledger).
- Separation of Functions and the Segregation of Duties (SOD) Segregation of tasks is a crucial element of efficient risk management and internal business controls (SOD).
- The shared accountability for a critical process, which assigns its key functions to many parties or departments, is the cornerstone of the SOD principle.
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