Segregation of Duties

Internal controls – processes affected by an organization’s structure, people, and information systems that help an organization achieve its objectives. Those internal controls include Control Conscious Environment, Risk Assessments, Control Activities (Authorizations/Approvals, Segregation of Duties, Safeguarding of Assets), Information & Communication and Monitoring.

There are four (4) major functions/processes to any business transaction.

  • Recording/documenting transaction
  • Authorization/Approvals
  • Custody of Assets
  • Reconciliation

Segregation of Duties provides assurance that not one individual has the ability to perform incompatible functions. Responsibilities for these functions are assigned to different individuals. The more you can separate the better!

The Segregation of Duties Chart can assist in segregating office functions.