With regard to segregation of duties, rule two is that asset custody and record keeping should be separated. What does this require in the revenue cycle?

What will be an ideal response?

In the revenue cycle, the warehouse has custody of physical assets while accounting (especially general ledger and inventory control) maintains the records. Also, in the cash receipts subsystem, cash receipts has custody of the asset (cash) while general ledger and accounts receivable keep the records.

PTS: 1

Computer Science & Information Technology

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