Segregation of Duties Review Report

Adequate segregation of duties is an important consideration in determining if a company’s control activities are effective in achieving the objectives of internal control. A fundamental element of internal control is the segregation of certain key duties. The basic idea underlying segregation of duties is that no employee or group should be in a position both to perpetrate and to conceal errors or fraud in the normal course of their duties.

In general, the principal incompatible duties to be segregated are:

• Custody of assets,
• Authorization or approval of related transactions affecting those assets, and
• Recording or reporting of related transactions. This report focuses on optimizing the Sarbanes-Oxley control environment ensuring proper segregation of duties exist.