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segregation of duty

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#1 Boboo



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Posted 12 January 2014 - 05:28 PM

Hello All,

I am not very understand the segregation of duty. Here is what i know, as long as you segregate the authority, record keeping and custody , you will be fine.

And here is my question.

1. Can one people in charge of 2 positions in one function? Like why you segregate warehouse(custody) and shipment(custody)? They all belongs to custody and why you have to segregate them?


2. Is that a problem if one people in different cycles charge different function? Like one people in sales cycle in charge of shipment(custody), and the same person in charge of purchasing (authority) in inventory cycle?


Thanks for the help


#2 vdesi



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Posted 06 April 2014 - 02:00 PM

Hey Boboo,

For your question #1 warehouse is the recording and shipment is custody.

in #2 the main thing you need to keep in mind is that the same person cannot initiate, approve and record a transaction.

Hope this helps.