Can the same accountant prepare wires and post cash entries if a manager approves the payments?

Author: AcadiFi Team

• Related Article: cpa-cash-controls-segregation-duties-audit-evidence
• Related QB: cash-disbursement-compensating-control

Answer draft:

Yes, that can be acceptable if the manager's approval is real, documented, and performed before cash leaves the bank. The key issue is not the staff accountant's title. The issue is whether one person can both move the money and hide the movement in the records.

In a stronger design, the accountant may prepare the payment template and record the entry, but a separate person releases the wire in the bank portal and another qualified person reviews the bank reconciliation. If the accountant can also approve or release the wire and clear the bank reconciliation, the control design is much weaker because custody, recording, and reconciliation are combined.

For AUD, frame the answer as control design plus compensating control. A separate approval can mitigate the risk only when the approver has enough information to detect an improper payment and actually performs the review.