Segregation of duties
Segregation of duties assigns incompatible responsibilities to different people to reduce opportunities for error or fraud. Typical separation covers authorisation, custody, recording and reconciliation, subject to practical constraints.
Worked example
A purchasing manager approves suppliers while a separate employee processes payments and another reviews bank reconciliations.
Common mistake
Segregation reduces risk but cannot prevent all collusion or management override.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |
| ACCA | BT | Direct | September 2026–June 2027 |
| ACCA | SBL | Direct | September 2026–June 2027 |
| FIA | FBT | Direct | September 2026–June 2027 |