What practice involves having multiple individuals responsible for different steps in cash handling to ensure accuracy?

The concept referenced in the question involves having multiple individuals responsible for different steps in cash handling to ensure accuracy, which aligns perfectly with the principle of segregation of duties.

This practice is a fundamental internal control mechanism designed to reduce the risk of errors and fraud. By dividing responsibilities among various personnel, it creates a system of checks and balances where no single individual has control over all aspects of a transaction. This way, if one person makes an error or engages in fraudulent activity, the likelihood of it going undetected is significantly minimized.

For instance, one employee may be responsible for receiving cash, while another processes transactions, and yet another conducts reconciliations. This separation makes it harder for any one person to manipulate the cash handling process without detection, thus enhancing the integrity of financial reporting.

Other practices mentioned, while related, do not specifically focus on the division of duties in the same way as segregation of duties. For example, dual control is used in specific high-risk situations where two individuals are needed to complete a task, but it does not encompass the broader application of dividing responsibilities across cash handling.