Which of the Following Segregation of Duties Is Not Required

question 55

Multiple Choice

Which of the following segregation of duties is not required for the B/AR/CR business process controls to be effective?

• A) price authorization and billing
• B) treasury and controllership
• C) bank reconciliation and cash receipts
• D) all of these are required for effective control

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Definitions:

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be eliminated through diversification, often related to economic, political, or social factors.

Market Risk

Variation on the return on a stock investment caused by things that tend to affect all stocks.

Stand-Alone Risk

The risk associated with investing in a stock that’s held by itself, outside of a portfolio. Stand-alone risk depends on the volatility of a stock’s own return rather than on the effect its inclusion has on the volatility of the return of a portfolio.

Business Risk

The potential for loss or failure in the operation of a company, often due to external and internal factors.