Explain Why It Is Important to Segregate Duties of Employees

question 97

Essay

Explain why it is important to segregate duties of employees dealing with cash in an organization. Provide three examples of ways which this segregation could be made on the receivables side.

---

Definitions:

Employment Opportunities

Available job positions or career prospects within the job market.

Opportunity Cost

The value of the next best alternative foregone as a result of making a decision; the cost of missing out on the second best choice while selecting among several options.

Supply Of Labor

The sum of hours employees are prepared and capable of working for a specified rate of pay during a particular time frame.

Labor Supply

The aggregate amount of time laborers are prepared and capable of working at a certain salary level.