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Delegations of Duties Discuss the concept of segregations of duties regarding internal controls in the accounting...

Delegations of Duties

Discuss the concept of segregations of duties regarding internal controls in the accounting profession.

When was this concept first introduced?

What does the law Sarbanes-Oxley state about internal controls?

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Answer #1

Delegation of duty occurts when one authority passes his job responsibility to the other for the purpose of better management.

Segregation of duties means division or allocation of duties between two or more employees in order to achieve reduced risk for fraud and/or errors. For example, in banks, one clerk may pass the entry for cash deposit and one may pass it to be entered into the system. This way duties are segregated and no one person would be passing the entry and verifying it.

SOX states that it is the responsibility of the management to implement internal controls over financial reports and ensure its effectiveness through regulatr audits and follow up. In absnece of which managmenet may be liable and can be sent to jail for non compliance,

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