Separation of duties divides responsibility for a transaction or a series of related transactions between two or more individuals or departments. Separation of duties reduces the risk of error and fraud.

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Separation of duties is a well-established principle in accounting and internal control systems, as it helps to prevent errors and fraud by ensuring that no one person has complete control over a transaction. By separating key functions such as authorizing, recording, and reconciling transactions, companies can reduce the risk of mistakes or intentional misconduct.

Separation of Duties Divides Responsibility for a Transaction or a Series