Why is Segregation of Duties important?
The Importance of Segregation of Duties Segregation of duties software is an internal control that prevents a single person from completing two or more tasks in a business process. Organizations require Segregation of Duties controls to separate duties among more than one individual to complete tasks in a business process to mitigate the risk of fraud, waste and error. Actual job titles and organizational structure may vary greatly from one organization to another, depending on the size and nature of the business. Therefore, it’s important for management to analyze the skillset and capabilities of the individuals involved based on the risk likely and impact to business processes. Critical job duties can be categorized into four types of functions: authorization, custody, record keeping, and reconciliation. In a perfect system, no one person should handle more than one type of function. You can apply the following options to segregate job duties: · ...