HLU plc is a UK based retail company. During a recent systems review of its creditor based expenditure cycle, you noted the following requirements:
§ employees responsible for the receipting of products from product suppliers cannot be involved in the approving/authorising of invoices for payment to creditors,
§ employees responsible for the approving/authorising of invoices for payment to creditors cannot be involved in the processing of payments to creditors,
§ employees responsible for the processing of payments to creditors cannot be involved in the reconciliation of the company bank account, and
§ employees responsible for the receipting of products from product suppliers cannot be involved in periodic stock checks of products in store.
Required
Explain:
§ the purpose of each of the above requirements within a company such as HLU plc, and
§ the problems which could occur should the above requirements not be complied with.