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Importance of Access Control in Revenue Cycle

Access control over revenue cycle documents is crucial for preventing unauthorized access to a firm's assets, similar to the importance of physical controls over cash and inventory. If an individual has access to both cash and accounting records, they could potentially steal cash and hide the theft by altering the records. Therefore, proper segregation of duties is essential to ensure that no one person has control over both asset custody and record-keeping.

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Zeah Viendell Cruzat
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4 views1 page

Importance of Access Control in Revenue Cycle

Access control over revenue cycle documents is crucial for preventing unauthorized access to a firm's assets, similar to the importance of physical controls over cash and inventory. If an individual has access to both cash and accounting records, they could potentially steal cash and hide the theft by altering the records. Therefore, proper segregation of duties is essential to ensure that no one person has control over both asset custody and record-keeping.

Uploaded by

Zeah Viendell Cruzat
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Activity in COMP3

Requirement: In not less than five sentences, explain why access control over revenue

cycle documents is just as important as the physical control devices over cash and

inventory.

Access control prevent and detect unauthorized and illegal access to the firm’s

asset. With regard to the revenue cycle, access control to the accounting records is just

as important as the physical control devices over cash and inventory. To give an

example, let us assume that a person has access to both cash and accounting records.

In this case, there is a possibility that the said individual could remove cash from the

firm’s account and conceal the act by adjusting the cash account. This is where physical

control comes in. Under physical control, there should be proper segregation of duties.

That is why no individual should have access to both asset custody and record-keeping

task. To wrap it up, access control and physical control must go hand in hand.

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