Saturday, October 11, 2014

Why should the person who keeps the records of an asset not be the person responsible for its custody?

Why should the person who keeps the records of an asset not be the person responsible for its custody?
This depends on the size of a company because if the owners are resposible for the custody of an asset this doesn't matter so much. It also depends on the type of asset you are talking about. If an asset is not something easily convertable to cash this also does not matter much.


In most cases, the person who keeps financial records for a company should not also be the one who has access to the asset. The reason for this is that if they do, it can be quite easy for them to steal from the company and cover it up by changing the financial records.

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