Elevate the effectiveness of your control environment with segregation of duties. Adequately separate incompatible responsibilities to increase accuracy.
Segregation of Duties
SEGREGATION OF DUTIES: CREATE AND SUSTAIN A CONSISTENT WORKFLOW
Becoming SOX compliant and scaling your company is only possible when you have effective internal controls in place – but it doesn’t just end there. Another necessity for SOX compliance is segregation of duties (SOD).
Segregation of duties is vital to your internal control framework, financial reporting, and SOX compliance. It constitutes a very important component of an effective control environment that prevents a single team member from completing two or more incompatible tasks in your process that involve authorization, record keeping, and custody of asset. It allows you to assign business responsibilities in your company to more than one team member. With this, you mitigate the risk of waste and error while boosting the effectiveness of your ICFR (internal controls over financial reporting).
So, to achieve effective internal controls over your financial reporting, you need to divide responsibilities adequately – and that’s where A2Q2 comes in.
We use the segregation of duties to help minimize the risk of not providing accurate financial information. It also helps you achieve SOX compliance, reach your goals, and reduce the excessive workload on a single person or a department.