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Segregation of Duties: Preventing Errors and Fraud
Understanding Segregation of Duties
Segregation of duties (SoD) is an internal control measure used to prevent errors and fraud within organizations. By assigning different tasks and responsibilities to multiple individuals, SoD aims to:
Benefits of Segregation of Duties
- Reduce the risk of errors
- Prevent fraud and collusion
- Improve accountability and transparency
- Strengthen internal controls
Conclusion
Segregation of duties plays a crucial role in maintaining a secure and efficient workflow within organizations. By preventing unilateral actions and ensuring that multiple individuals are responsible for critical tasks, SoD safeguards organizations against financial losses, reputational damage, and legal liabilities. It is an essential internal control measure that all organizations should adopt to protect their assets and uphold the integrity of their operations.
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