During the audit of Hill Enterprises, Inc., a small wholesaler of mountain biking and other outdoor equipment in the southeastern United States, the external auditors, Jones CPAs, are discussing the importance of segregation of duties with the firm's management. Both the firm's CEO and CFO do not see the importance of this concept, and tell the auditors that it sounds like nothing more than a reason to have to hire extra staff. Which of the following would be the best explanation to describe and explain segregation of duties to these executives? If a firm's top management commit to an effective and appropriate segregation of duties, then the external auditors are usually able to complete the audit with less billable hours charged. This in turn reduces the cost of the audit which benefits management and the shareholders. Segregation of duties is important for both the external auditors and the firm because the auditors are required to adhere to strict rules and guidelines set forth in generally accepted auditing standards which dictate minimum standards a firm must abide by in this area. Segregation of duties is important to both the firm and the external auditors. An appropriate division of duties helps to ensure that no one employee is put in a position where he or she has an opportunity commit fraud or make mistakes that impact multiple areas. Segregation of duties helps to ensure that no one employee is overworked, and as a result, inadvertently commits errors related to their job. Increased errors may spill over into the financial statements, which would increase audit risk for the auditors.