Which duties should be segregated

As a result, the auditor may increase sample sizes, lower substantive testing threshold or increase audit procedures overall. It is important to always first consider the risks to the organization. Businesses are continuing to increase reliance on IT, further making SoDs important in efforts to reduce fraud and increase operational effectiveness. These controls include audit trails, reconciliation, supervisory reviews and transaction logs. You can read more on this topic in our Segregation of Duties and Logical Access Guide and by exploring these related risk management tools on KnowledgeLeader:.

KnowledgeLeader, provided by Protiviti, is the premier resource for internal audit and risk management professionals. With over 1, customizable tools and 1, articles by industry experts, we offer the most comprehensive service on the market. KnowledgeLeader Blog. Some examples of incompatible duties are:. There are four general categories of duties or responsibilities which are examined when segregation of duties are discussed: authorization , custody , record keeping and reconciliation.

In an ideal system, different employees would perform each of these four major functions. In other words, no one person should have control of two or more of these responsibilities. The more negotiable the asset, the greater the need for proper segregation of duties - especially when dealing with cash, negotiable checks and inventories.

In those instances where duties cannot be fully segregated, mitigating or compensating controls must be established. Mitigating or compensating controls are additional procedures designed to reduce the risk of errors or irregularities. For instance, if the record keeper also performs a reconciliation process a detailed review of the reconciliation could be performed and documented by a supervisor to provide additional control over the assignment of incompatible functions.

SoD tools allow you to detect, analyse and manage risks associated with Segregation of Duties conflicts using complex role-based authorisation models. Preventive Segregation of Duties controls allow you to check for SOD violations before new access is assigned to a user.

Read about our Segregation of Duties preventive solutions. Read more about Segregation of Duties with our popular free resources. Role-based Access Management for Oracle. Download the ebook. D ownload ebook. What are some common examples of Segregation of Duties?

Why do we need Segregation of Duties controls? What do Segregation of Duties controls do? Persons approving manual journal should not post the same journal. All Right Reserved. We use cookies on our website to offer you you most relevant experience possible.