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AC2401Slide no: 1
© NBS/NTU. All rights reserved.
Seminar 3
Business Process Controls
Part 3
Nanyang Technological University
Nanyang Business School
AC2401: Accounting Information Systems
AC2401Slide no: 2
© NBS/NTU. All rights reserved.
Segregation of Duties
•Segregation
of accounting
duties
AC2401Slide no: 3
© NBS/NTU. All rights reserved.
Segregation of Duties
–Approving changes to customer credit and take
customer orders (order taking & credit admin)
• If both duties are performed by the same person,
they could authorize sales to friends that are
subsequently not paid
–Ship merchandise and bill customers (shipping &
billing)
• If the same person performs both duties, they could
ship merchandise to friends without billing them
Segregation of Duties
–Maintain accounts receivable and issue credit
memos (AR & credit memos)
• If the same person performed both tasks, they could
write off their friends’ accounts
–Deposit customer payments and reconcile the bank
