An objective of segregation of duties is to structure the organization so that the perpetration of a fraud requires collusion between two or more individuals. What must a company do to achieve this objective? Why?

Certain record-keeping tasks – subsidiary ledgers (AP and inventory), journals (purchases and cash disbursements, and the GL – should be separately maintained. An individual with total record-keeping responsibility, in collusion with someone with asset custody, is in a position to perpetrate a fraud.