Browse Definitions:
Definition

segregation of duties (SoD)

Contributor(s): Ivy Wigmore

Segregation of duties (SoD) is an internal control designed to prevent error and fraud by ensuring that at least two individuals are responsible for the separate parts of any task. 

SoD involves breaking down tasks that might reasonably be completed by a single individual into multiple tasks so that no one person is solely in control. Payroll management, for example, is an administrative area in which both fraud and error are risks. A common segregation of duties for payroll is to have one employee responsible for the accounting portion of the job and someone else responsible for signing the checks. 

Although it improves security, breaking tasks down into separate components can negatively impact business efficiency and increase costs, complexity and staffing requirements. For that reason, most organizations apply SoD to only the most vulnerable and the most mission critical elements of the business.

Segregation of duties is also known as separation of duties.

See also: four eyes principle, risk avoidance, corporate governance, accounting error, regulatory compliance, compliance burden

This was last updated in January 2014

Continue Reading About segregation of duties (SoD)

Join the conversation

1 comment

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

What if the function of CFO oversees the financial and commercial aspect of the Group business. For example overseeing the corporate finance, finance, procurement, project operations, human resource & administration, warehouse and logistic.  He/she is the person who approve all transaction in these areas.

Are these fall under Vague segregation of duties?
Cancel

-ADS BY GOOGLE

File Extensions and File Formats

SearchCompliance

  • pure risk (absolute risk)

    Pure risk, also called absolute risk, is a category of threat that is beyond human control and has only one possible outcome if ...

  • risk assessment

    Risk assessment is the identification of hazards that could negatively impact an organization's ability to conduct business.

  • audit program (audit plan)

    An audit program, also called an audit plan, is an action plan that documents what procedures an auditor will follow to validate ...

SearchSecurity

SearchHealthIT

SearchDisasterRecovery

  • business continuity and disaster recovery (BCDR)

    Business continuity and disaster recovery (BCDR) are closely related practices that describe an organization's preparation for ...

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • call tree

    A call tree -- sometimes referred to as a phone tree -- is a telecommunications chain for notifying specific individuals of an ...

SearchStorage

  • nearline storage

    Nearline storage is the on-site storage of data on removable media.

  • application-aware storage

    Application-aware storage is a storage system with built-in intelligence about relevant applications and their utilization ...

  • Remote Direct Memory Access (RDMA)

    Remote Direct Memory Access (RDMA) is a technology that allows computers in a network to exchange data in main memory without ...

SearchSolidStateStorage

  • 3D XPoint

    3D XPoint is memory storage technology jointly developed by Intel and Micron Technology Inc.

  • RRAM or ReRAM (resistive RAM)

    RRAM or ReRAM (resistive random access memory) is a form of nonvolatile storage that operates by changing the resistance of a ...

  • JEDEC

    JEDEC is a global industry group that develops open standards for microelectronics.

SearchCloudStorage

  • Google Cloud Storage

    Google Cloud Storage is an enterprise public cloud storage platform that can house large unstructured data sets.

  • RESTful API

    A RESTful application program interface breaks down a transaction to create a series of small modules, each of which addresses an...

  • cloud storage infrastructure

    Cloud storage infrastructure is the hardware and software framework that supports the computing requirements of a private or ...

Close