Segregation of duties

Segregation of duties (also called separation of functions) is indispensable in an internal control system. There are two common applications of this principle:

  1. Different individuals should be responsible for related activities.
  2. The responsibility for record keeping for an asset should be separate from the physical custody of that asset.

The rationale for segregation of duties is this: the work of ne employee should, without a duplication of effort, provide a reliable basis for evaluating the work of another employee.

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