Segregation of Duties

Segregation of Duties (SoD) is a key principle in financial and operational processes that aims to reduce the risk of errors and fraud. It involves dividing responsibilities among different individuals so that no one person has complete control over a task. For example, in a business, one person might handle cash receipts while another manages financial records. This division helps ensure accountability and creates a system of checks and balances. Overall, SoD is essential for maintaining integrity and transparency in operations, protecting assets, and promoting compliance with regulations.