Answer (D) is correct . Proper segregation of duties and responsibilities reduces the opportunity for an individual to both perpetrate and conceal an error or fraud in the normal course of his/her duties. Hence, different people should be assigned the responsibilities for authorizing transactions, recordkeeping, and asset custody.
Answer (A) is incorrect because Accountants typically journalize entries and prepare financial statements.
Answer (B) is incorrect because Accountants may record both cash receipts and cash disbursements as long as they do not have custody of the cash.
Answer (C) is incorrect because Management establishes internal control and ultimately has the responsibility to authorize transactions.
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