Explain how the principle of separation of duties is violated in each the following situations. Also suggest one or more procedure to reduce risk, and exposure highlighted in each of example.
a. A payroll clerk recorded 40-hour workweek for an employee who had quit the previous week. He then prepared a paycheck for this employee, forged her signature, and cashed the check.
The payroll clerk only has an authority to prepare the paycheck, not to signature or cashed the checks. The signature of payroll is the duty of HR manager, while cashed the paychecks is the duties of the cashier, so, the payroll clerk has violated his/her job description and his/her authorities.
In this case, we must make know job description and authorities to the clerk. Because the duty of clerk on this case is only record the activities happen. If all the job done by the clerk, the clerk can make a manipulation or some fraud for example, that the clerk issue a check but the check is not for the employee but for the clerk. So we must have someone to control the clerk and cut it out when some mistake happen. And to solve this case we can also order someone to be the HR manager to make this case more secure from fraud. And for cashed the check we can give that job to cashier. After separate this duty and authorities we can minimize the risk.
b. While opening the mail, cashier set aside, and subsequently cashed, two checks payable to the company on account. Violation:
In this case, I think the problem, is why the cashier opened the mail? I think this is clerk job. The cashier job is only spending the money. So we must make a new job description for the cashier and the clerk.
So we can make solve this case by, first we must separate the cashier and clerk job. Make new job description for them. The cashier job is only spend the money if there is check payable. But for checking the mail is still the job of clerk. Then...
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