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 records. If the employee had both duties, then the employee could write checks to anyone they wanted and fictitiously record the disbursement as an expense in the normal course of business!
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