Why Is It Important to Organizationally Separate the Accounting Function

question 92

Essay

Why is it important to organizationally separate the accounting function from other functions of the organization?

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Definitions:

Note

A written record or reminder, often used in contracts or financial transactions to denote terms, obligations, or agreements.

Maker

A maker is the party that issues or creates a financial instrument, such as a check or promissory note, committing themselves to pay a specified amount of money to a designated beneficiary.

Corporate Purchase

A transaction involving the acquisition of assets or stock of a company by another corporation.

Ordinary Holder

An entity or individual that possesses a negotiable instrument but does not necessarily have the rights of a holder in due course.