Suggestion:
Answer:
Bank reconciliation is a control procedure used to prevent and detect errors, omissions and fraud. Accounts receivable and bank reconciliation duties are incompatible because the former has a direct relationship with the amounts shown in the the bank reconciliation statement (collection and deposit section).
When assigned with both duties, he may fraudulently understate the collection (take the money for his own benefit or by doing lapping). To conceal it, he would also understate the collections in the bank reconciliation statement (which is supposed to be a control).
