The concept of segregation of duties – dividing conflicting or incompatible responsibilities among more than one individual – is a vital fraud prevention tool for organizations of all sizes, within all industries and sectors. Implementing it is a foundational element of effective internal controls.
Segregation of duties and other fraud prevention measures function as a form of insurance. This insurance shields organizations from having to assess the known financial damages and losses in confidence and trust that accompany fraud detection; it spares organizations the prolonged business disruption associated with a fraud investigation; and it requires both ethical leadership and the willingness to acknowledge that the potential for fraud exists everywhere.
The Weaver Risk Insights document Fraud Prevention: Segregation of Duties elaborates on sustaining a fraud prevention focus through segregation of duties. The document covers:
- Emphasizing fraud prevention,
- Incorporating and maintaining segregation of duties,
- Integrating IT access privileges, and
- Implementing additional monitoring controls.