IIA-CIA-PART2 · Question #364
Below is a flowchart detailing an organization's bank reconciliation process. Which of the following conclusions can be drawn from the flowchart?
The correct answer is B. There is an appropriate segregation of duties in the treasury department during the bank. The flowchart indicates that different individuals are responsible for various stages of the bank reconciliation process. The Treasury Accountant posts payments and performs reconciliations, while the Senior Treasury Accountant obtains and uploads bank statements, and the…
Question
Below is a flowchart detailing an organization's bank reconciliation process. Which of the following conclusions can be drawn from the flowchart?
Exhibit
Options
- AThere is a conflict in the segregation of duties between preparing bank reconciliations and posting
- BThere is an appropriate segregation of duties in the treasury department during the bank
- CThere is a large workload for the treasury accountant during the bank reconciliation process.
- DBank statements should be obtained at a higher level, such as through the treasury supervisor.
How the community answered
(45 responses)- A11% (5)
- B82% (37)
- C4% (2)
- D2% (1)
Explanation
The flowchart indicates that different individuals are responsible for various stages of the bank reconciliation process. The Treasury Accountant posts payments and performs reconciliations, while the Senior Treasury Accountant obtains and uploads bank statements, and the Treasury Supervisor approves/reviews the reconciliations. This segregation of duties ensures that no single individual has control over all aspects of the financial transaction process, which helps in preventing errors and fraud.
Topics
Community Discussion
No community discussion yet for this question.