Internal Controls Transaction Cycles A11-09b

Some segregation of duties controls for expenditures/disbursement cycle.

1. Purchase requisitions should originate from user departments.
2. Purchase orders should be prepared in the purchasing department.
3. Preparer of the order should be different from the approver.
4. Receiving function should be separate from purchasing personnel, and different from accounts payable.
5. Accounts payable should be separated from cash disbursements (typically treasury function).
6. Person doing bank reconciliations should be different all the above.