Workflow Templates: Segregation of Duties Checklist

Cash Receipts and Deposits

Ensure that the employee responsible for receiving cash and checks is not the same one who records the transactions in the accounting system.

Verify that the person depositing the cash to the bank is different from the individuals collecting or recording it.

Implement a policy where the bank reconciliation is performed by someone who does not have duties related to cash handling or recording.

Purchasing and Accounts Payable

Segregate the purchasing function from the accounts payable function to prevent an individual from initiating a purchase and also authorizing payment.

Confirm that only designated employees have the authority to approve purchase orders and that this is separate from the receiving function.

Ensure that the employee responsible for reconciling the accounts payable ledger is not involved in the purchasing or payment approval process.

Sales and Accounts Receivable

Assign the task of generating invoices to one employee while another is responsible for collecting payments and a third person is in charge of recording these transactions in the accounting system.

Make certain that the person who applies customer payments to accounts receivable is not the same individual who is responsible for the invoicing and collections process.

Implement a routine review process in which a supervisor or independent party periodically checks the accounts receivable ledger for irregularities.

Payroll Processing

Segregate the duties so that the person responsible for processing payroll is not the same as the one who authorizes payroll changes or has access to payroll records.

Ensure an independent review of the payroll register by someone who does not have the capability to process or distribute payroll.

Establish a protocol where the distribution of physical paychecks, if applicable, is handled by someone who is not involved in the payroll processing or accounting records.

Fixed Assets and Inventory

Have one individual maintain the detailed fixed asset records, while another conducts physical inventory counts and a third reviews and reconciles the records.

Separate the responsibilities of employees initiating purchase orders for fixed assets or inventory from those recording the assets in the accounting system.

Implement a periodic review and reconciliation of inventory records by an individual who does not have responsibilities for inventory custody or transactions.

Template Library Home

Segregation of Duties Checklist

Cash Receipts and Deposits

Purchasing and Accounts Payable

Sales and Accounts Receivable

Payroll Processing

Fixed Assets and Inventory

Use this template in Manifestly

Template Library Home

Segregation of Duties Checklist

Cash Receipts and Deposits

Purchasing and Accounts Payable

Sales and Accounts Receivable

Payroll Processing

Fixed Assets and Inventory

Use this template in Manifestly

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