Key Segregation of Duties in the Revenue Process

Question 1

Receiving and preparing customer order

Answer 1

Order Entry Department

Question 2

Approving credit

Answer 2

Credit Department

Question 3

Shipping goods to customer and completing shipping document

Answer 3

Shipping Department

Question 4

Preparing customer invoice

Answer 4

Accounts Receivable Department

Question 5

Updating accounts receivable records for sales

Answer 5

Accounts Receivable Department

Question 6

Receiving customer’s remittance

Answer 6

Cash Receipts Department

Question 7

Updating accounts receivable for remittances

Answer 7

Accounts Receivable Department

Question 8

Preparing accounts receivable aged trial balance

Answer 8

Accounts Receivable Department

Question 9

Authorization of accounts receivable write-off

Answer 9

Treasurer

Question 10

Name four key segregation of duties in the revenue department.

Answer 10

1. The credit function should be segregated from the billing function.
2. The shipping function should be segregated from the billing function.
3. The accounts receivable function should be segregated from the general ledger function.
4. The cash receipts function should be segregated from the accounts receivable function.