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.