How to test whether proper segregation of duties exist?
The audit team should perform inquiry with employees of the department to understand what they are responsible for. Additionally, the audit team should observe how the employee performs their job and what type of system access they each have.
This will help the audit team understand whether there are any red flags when it comes to segregation of duties.
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How to prevent a fictitious employee from being paid?
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In order for proper segregation of duties to exist in a company’s revenue cycle, the company should segregate the sales department, the credit approval department, the shipping department, and the billing department.
What functions should be separated for proper segregation of duties to exist?
For proper segregation of duties (SOD) to exist, the company should ensure that an individual employee does not have access to more than one responsibility that relates to authorization, record keeping or custody of assets. For example, an employee should not have the ability to write checks and also record cash disbursements in the accounting...
