Segregation of key duties is a fundamental element of internal control. Adequate segregation of duties reduces the likelihood that errors will remain undetected by providing for separate processing by different individuals at various stages of a transaction, and for independent reviews of the work performed. The basic idea underlying segregation of duties is that no employee or group should be in a position to perpetrate and to conceal errors or fraud in the normal course of their duties.
This document demonstrates how to properly segregate duties related to the financial reporting process.