Separation of Duties
Definition
Separation of duties means no single person controls every step of a process. For example, the person who enters bills should not be the same person who approves and sends payments.
Example
In a small business, the bookkeeper enters bills and the owner approves payments. This separation prevents the bookkeeper from paying a fake vendor without anyone knowing.
Why It Matters
Separation of duties is one of the strongest controls against fraud and error. When it is not possible, a compensating control like owner review is needed.