Segregation of Duties - SoD

Segregation of Duties (SoD) is a control avtivity where an activity or set of activities are divided among several people in order to reduce the risk of fraud.

Segregation of Duties is built around the idea that a critical or sensitive task be split from one person, thus reducing the likelihood of intentional fraud.

Segregation of Duties represents a key internal control to help ensure no single person has too much control over a specific business operation.

Segregation of duties is an essential component of a properly function internal controls environment within an organization.

Segregation of Duties (SoD) segregates the following four general categories of duties:

• Authorization of Operations - The process of reviewing and approving a specific operation
• Handling of Assets - Having custody over to a particular physical asset
• Record Keeping - The ability to create and maintain records of operations and transactions
• Reconciliation - Verify the proper processing and recording of transactions to help provide assurance that all transactional data are authorized, recorded timely, and valid