Segregation of duties_it's importance

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In a business organization each employees and superior have various responsibilities and duties to play which of course amounts to the overall growth and development of the business organization. On the other hand it is important that the segregation of duties in a business organization exist which of course refers to the fact that duties and responsibilities is not carried out by just one employee especially in areas of handling cash and also authorizing cash movements. Respective employees should be allocated to the handling of cash so that tensional soliciting of funds cannot take place.

Segregation of duties helps to reduce fraud in a business organization and it is best advice that an audit officer enforce the existence of duties segregation in a business organization.