Segregation of Duties
Segregation of Duties (SoD) is a basic principle used in businesses to prevent fraud and errors. Think of it as not letting one person have too much control - like requiring two different people to write and sign checks. It's a key concept in auditing where different people handle different parts of a process to ensure better control and reduce risks. For example, the person who approves purchases shouldn't be the same person who pays the bills. This concept is also sometimes called "separation of duties" or "segregation of responsibilities."
Examples in Resumes
Implemented Segregation of Duties controls in accounting department
Conducted risk assessments to ensure proper Segregation of Duties across financial operations
Developed Segregation of Duties matrix for ERP system access
Reviewed and updated Separation of Duties policies across multiple departments
Typical job title: "Internal Auditors"
Also try searching for:
Where to Find Internal Auditors
Professional Associations
Job Boards
Professional Networks
Example Interview Questions
Senior Level Questions
Q: How would you implement Segregation of Duties in a small company with limited staff?
Expected Answer: Should discuss creative solutions like rotating duties, involving owner oversight, using technology controls, and risk-based prioritization of critical functions that need separation.
Q: How do you handle conflicts between operational efficiency and Segregation of Duties requirements?
Expected Answer: Should explain balancing business needs with controls, compensating controls, risk assessment approaches, and how to document exceptions when perfect segregation isn't possible.
Mid Level Questions
Q: What are the key areas where Segregation of Duties is most critical in financial processes?
Expected Answer: Should mention separation between custody of assets, authorization of transactions, record keeping, and reconciliation processes, with practical examples.
Q: How do you identify Segregation of Duties conflicts in system access rights?
Expected Answer: Should explain reviewing user access reports, identifying incompatible functions, and using matrices to map out conflicting duties.
Junior Level Questions
Q: What is Segregation of Duties and why is it important?
Expected Answer: Should explain the basic concept of separating tasks between different people to prevent fraud and errors, with simple examples like separating cash handling from record keeping.
Q: What are some common Segregation of Duties controls in accounts payable?
Expected Answer: Should describe basic separations like different people creating vendors, entering invoices, and approving payments.
Experience Level Indicators
Junior (0-2 years)
- Basic understanding of internal controls
- Ability to identify clear conflicts in duties
- Documentation of control processes
- Basic risk assessment skills
Mid (2-5 years)
- Design of control matrices
- System access review
- Implementation of control frameworks
- Risk assessment and mitigation
Senior (5+ years)
- Enterprise-wide control design
- Complex risk assessment
- Policy development
- Control optimization strategies
Red Flags to Watch For
- No understanding of basic internal control concepts
- Lack of experience with control documentation
- Unable to identify obvious conflicts in duties
- No knowledge of risk assessment processes
- Unfamiliarity with compliance requirements
Related Terms
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