Segregation of Duties for Core Business Processes
Author: Lynn Fountain
| CPE Credit: |
2 hours for CPAs |
Also known as Separation of Duties, Segregation of Duties is a crucial aspect of risk management, as well as SOX compliance. Organizations must continue to identify the inherent risk that exists in the absence of effective segregation and ensure that suitable mitigation controls are implemented.
Segregation of duties (SOD) is the cornerstone of strong internal control. Inability to maintain proper SOD can hamper an organization's ability to deliver service efficiently. Personnel often struggle with the proper concepts of what contributes to SOD. When resources are scarce, the concept is even more difficult.
The basics of segregation of duties indicates that no one individual should be given or assigned job functions in more than one of the following categories:
- Asset custody
- Authorization and approval
- Recordkeeping
- Reconciliation
Publication Date: March 2025
Designed For
Financial executives, financial management, accountants and finance professionals, internal and external auditors, operational and compliance professionals.
Topics Covered
- Basic requirements for SOD
- Definition of SOD roles and processes
- Risks of inadequate SOD
- SOD opportunities in role assignments
- SOD within individual business processes
- Revenue/receivables
- Disbursement
- Procure to pay/Inventory
- Treasury/cash
- Payroll
- Examine control mechanisms
Learning Objectives
- State the definition of segregation of duties (SOD)
- Identify risks of inadequate SOD
- Recognize how SOD applies to individual business processes
- Identify SOD opportunities in role assignments
- Describe control mechanisms
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
None
Advance Preparation
None
