The principle of segregation of duties in handling institutional funds

Type: MCQ • Marks: 1

The principle of segregation of duties in handling institutional funds means:

A. One person should control every stage of the transaction

B. Different financial functions should, where practicable, be separated to reduce error and misuse

C. No employee should maintain records

D. The Principal should personally make every payment

Explanation

Separating authorisation, custody, recording and verification strengthens internal control.

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UPSC Principal & Vice Principal Management Finance Administration

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The principle of segregation of duties in handling institutional funds means: