Vendor Maintenance & Posting Invoices
Separation of creating vendors in a system from posting and paying invoices. Helps to prevent fictitious customers with fictitious invoices.Purchase Orders & Approvals
Purchase orders typically require multiple approvals.Payments & Bank Reconciliation
Making payments to vendors and reconciliation of bank statements.Paychecks & Bank Reconciliation
Paying employees and bank reconciliation.Journal Entry & Approvals
Separation of entering a journal entry and approval of journal entries.Custody of Cash & Account Receivable Reconciliation
Separating roles that manage cash deposits from customers and reconciliation of those deposits with sales records.Hire & Set Compensation
Hiring an employee and setting their compensation. Helps to prevent people from hiring friends at an inappropriate salary.Hire & Approve Hire
Hiring an employee often has to be approved by multiple departments.Expenses & Expense Approvals
Separation of claiming and approving expenses.Asset Custody & Asset Inventory
Separation of custody of assets and record keeping related to those assets.Sales & Approvals
Separation of selling and approval of sales deals such as approval of margins and customer credit.Customer Maintenance & Credit Notes
Adding customers in a system and posting credit notes.Shipping & Customer Accounts
Shipping and receiving is separated from posting transactions such as credit notes to a customer's account.Risk Management & Trading
Separating risk taking activities such as financial trading from risk management activities.Advising Clients & Trading
Separation of advising banking clients on things such as mergers & acquisition from trading that firm's stock.Development & Administration
Separating development of software and administration of systems, particularly production systems. Allows process to be followed in updating code that is tested and reviewed.Development & Operations
Separation of software development and the operation of related systems and services. Allows problems with software to be reported accurately and managed within process.System Access Permissions
Adding and editing system access permissions is viewed as a root authority that is separated from all financial management activities.System Configuration & Approvals
Changing systems and software typically requires a number of approvals. For example, implementing changes to firewall rules is separated from approving those changes as a basic security control.| Overview: Segregation Of Duties | ||
Type | Segregation Of Duties | |
Definition | The principle that no single individual is given authority to execute two conflicting duties. | |
Also Known As | SoDSeparation of Duties | |
Related Concepts | ||
