Risk Insights: Fraud Prevention through Segregation of Duties

The concept of segregation of duties – dividing conflicting or incompatible responsibilities among more than one individual – is a vital fraud prevention tool for organizations of all sizes, within all industries and sectors. Implementing it is a foundational element of effective internal controls.

Segregation of duties and other fraud prevention measures function as a form of insurance. This insurance shields organizations from having to assess the known financial damages and losses in confidence and trust that accompany fraud detection; it spares organizations the prolonged business disruption associated with a fraud investigation; and it requires both ethical leadership and the willingness to acknowledge that the potential for fraud exists everywhere.

The Weaver Risk Insights document Fraud Prevention: Segregation of Duties elaborates on sustaining a fraud prevention focus through segregation of duties. The document covers:

• Emphasizing fraud prevention,
• Incorporating and maintaining segregation of duties,
• Integrating IT access privileges, and
• Implementing additional monitoring controls.

For a discussion specific to your organization, please contact Alyssa Martin or Jody Allred, partners in risk advisory services.