Policies, procedures, and an organizational structure established so that one individual cannot control key aspects of physical and/or computer-related operations and thereby conduct unauthorized actions or gain unauthorized.
An internal control procedure whereby no one individual is placed in a position of being able to both commit and conceal an irregularity.
A method of working whereby tasks are apportioned between different members of staff in order to reduce the scope for error and fraud. For example, users who create data are not permitted to authorise processing; Systems Development staff are not allowed to be involved with live operations. This approach will not eliminate collusion between members of staff in different areas, but is a deterrent. In addition, the segregation of duties provides a safeguard to your staff and contractors against the possibility of unintentional damage through accident or incompetence - 'what they are not able to do (on the system) they cannot be blamed for'.
A type of control activity. Different people are assigned responsibilities for authorizing transactions, recording transactions and maintaining custody of assets. The purpose is to inhibit the perpetration and concealment errors or irregularities, by reducing the opportunity to do so in the course of people's everyday work.
A basic principle of internal control that prevents individuals from having responsibility for all phases of a job process, thus guarding against misuse or misappropriation of company assets.
Assigning different people the responsibilities of authorizing transactions, recording transactions, and maintaining custody of assets. Segregation of duties reduces the opportunities for one person to both perpetrate and conceal errors or fraud.
Separation of the management or execution of certain duties or of areas of responsibility is required in order to prevent and reduce opportunities for unauthorized modification or misuse of data or service.
Strategy to provide an internal check on performance through separation of custody of assets from accounting personnel, separation of authorization of transactions from custody of related assets, separation of operational responsibilities from record keeping responsibilities.
