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Segregation of duties (SOD) is the cornerstone of strong internal control. Inability to maintain proper SOD can hamper an organization's ability to deliver service efficiently. Personnel often struggle with the proper concepts of what contributes to SOD.  When resources are scarce, the concept is even more difficult.

A separate course titled “Segregation of duties for the office of the CFO” highlighted why and how the office of the CFO should pay special attention to segregation of duties (SOD).  This course delves deeper into core business processes and examine the concepts of which duties should be segregated to provide adequate internal control.

The basics of segregation of duties indicates that no one individual should be given or assigned job functions in more than one of the following categories:

  • Asset custody
  • Authorization and approval
  • Recordkeeping
  • Reconciliation

This course examines each of the following business processes and discuss key roles/tasks that should be evaluated for proper segregation of duties.

  • Revenue and receivables
  • Disbursement
  • Procure to pay
  • Treasury and cash
  • Inventory
  • Payroll

Learning Objectives

  • Explore the definition of segregation of duties (SOD), and recognize how it applies to roles and processes.
  • Identify risks of inadequate SOD.
  • Recognize how SOD applies to individual business processes.
  • Identify SOD opportunities in role assignments.
  • Discover control mechanisms.
Last updated/reviewed: November 27, 2019

Included In Certifications

This course is included in the following Certification Programs:

18 CoursesInternal Controls Certification

  1. Management Internal Control Essentials
  2. COSO 2013 Framework Requirements and Implementation Overview
  3. Applying the Standards for Internal Auditors in Line with Your Organization's Needs - Part One
  4. Applying the Standards for Internal Auditors in Line with Your Organization's Needs - Part Two: Managing Internal Audit and Nature of Work
  5. Applying the Standards for Internal Auditors in Line with Your Organization's Needs – Part Three: Executing the Audit Engagement
  6. Identifying and Implementing the Proper Balance of Internal Controls
  7. Proper Documentation Methods for Internal Audit and Internal Controls Processes
  8. Information Technology (IT) Risks in Emerging Business Environments
  9. Foundations for a Strong Internal Audit Department
  10. Keys to Managing an Effective Internal Audit Function
  11. Internal Audit: Keys to Building Effective Relationships with the Audit Committee
  12. Understanding Risk-Based Auditing
  13. Risk Based Auditing – Establishing a Methodology
  14. Risk Based Auditing – Applying the Methodology
  15. Segregation of Duties for Core Business Processes
  16. Keys To Maintaining Objectivity and Professional Skepticism
  17. When The Whistle Blows Part 2: Managing Whistleblower Hotlines
  18. Tools for Internal Control Certificate

163 Reviews (656 ratings)Reviews

4
Member's Profile
The course was useful because it reinforced the understanding of internal controls and SOD.However the session on cash receipting and cheques may have to be enhanced to include cashless systems and digitalized processes.
5
Anonymous Author
very good overview of basic principles of SOD that are good to know for managers of all levels and specially in small business
4
Anonymous Author
This course was very informative dealing with the segregation of duties and its importance.The slides from the instructor were very informative and I also enjoyed her use of examples which reinforced the ideals behind segregation of duties including the risks and roles in SOD.
5
Anonymous Author
Segregation of Duties for Core Business Processes was an informative class that had great examples of how organizations should have SOD. Unfortunately, even some million dollar companies still have 1 and 2 person accounting departments that do not allow for proper SOD.
5
Member's Profile
Good course, appropriate level of detail however there were a few sections that got confusing and the information seemed to conflict or not be as clear as it could be (recording vs. recordkeeping vs. reconciliation used interchangeably but then specific in some areas)
3
Anonymous Author
Smaller organizations always have a challenge when it comes to separation of duties. Unfortunately, subsidiary operating units of larger corporations are usually subjected to the same challenges as smaller companies because of mandates from above limiting resources.
5
Anonymous Author
Segregation of Duties for Core Business Processes does a good job emphasizing the importance of segregation of duties within an organization. This should be treated as one of the building blocks for any company in order to maintain checks and balances.
5
Anonymous Author
This is a great course on segregation of duties. I especially liked how it maps out the entire procure to pay process as well as the detailed descriptions of different roles/departments in the organization and their appropriate responsibilities.
4
Anonymous Author
The course is very hard, and I took more time to learn the couse. Ms.Lynn explained the theories with many detailed exampls and explanations, which gave me a deeper level to comprehens the contents. Thanks very much for Ms.Lynn's great work!
5
Member's Profile
The course was extremely interesting. While the concepts are not too complicated, the basics of segregation of duties are crucial for the success of a business and as an internal auditor something that we have to look out for a lot.
5
Member's Profile
The professor is great. Ms. Fountain courses are excellent, practical and useful. Sometimes, I find the questions tricky on purpose, I do not know if the questions are designed to make you think or to confuse you.
5
Member's Profile
Great course on the importance of segregation of duties for core business processes. A lot of great content in this course that can be utilize by anyone working within and organization and expanding SOD process.
5
Anonymous Author
Instructor was very thorough and presented the material in a very easy to understand way. I liked that she discussed proper segregation of duties for different business functions such as payroll, purchasing, etc.
5
Anonymous Author
Did a great job teaching the segregation of duties and its importance in the work place. Lastly, she gave great examples of what happens when you do not use SOD and what the appropriate actions are to fix them.
5
Member's Profile
Excellent course for those wanting to understand the SOD for the various accounting functions. The discussion on the need for SOD is something that everyone needs a refresher on. I highly recommend this class.
5
Member's Profile
This training touches on SOD for all major processes and necessarily repeats the four separate duties found within each process. Contextual examples drive home the meaning of adequate segregation of duties.
5
Anonymous Author
Great job
4
Anonymous Author
Good overview of key segregation of duties in common business cycles. Most applicable for those in a smaller organization, but a good refresher for anyone looking to implement solid internal controls.
5
Member's Profile
Fantastic course! This is exactly what I needed to prep for a new Controller role. This lecture give specific instructions, by function, of how to properly segregate the duties among staff.
5
Anonymous Author
This is a helpful course. As an accounting manager at a small company, it's nice to refresh on the importance of internal controls, especially when we "trust our people" a little too much.
5
Anonymous Author
I was an excellent course. Thorough. But realistically, limitations imposed by virtue of staff size in a small company will not provide for realistic implementation of many of the ideas.
5
Member's Profile
Good detail and explanation. SOD defined as a principle and applied to standard business processes in series of examples. Also, the procedure for evaluating SOD was explained, very useful.
5
Member's Profile
Illumeo members, Lynn has done it again. This time with comprehensive detail in the Segregation of Duties arena. Great refresher and wonderful overview for new to internal controls.
4
Member's Profile
Nice job with explaining SOD! What would be good to see is SOD as it pertains to other industries, in addition to manufacturing. Like services or banking finance. Thanks.
5
Anonymous Author
Very good review of the fundamentals as well as their application to the specific processes. While it is the basics, sometimes the application is not as basic as it sounds.
5
Anonymous Author
Awesome, concise, course over SoD controls. Instructor was very clear in her communications and the presentation slides were well constructed. Would recommend this class.
3
Anonymous Author
A lot of topics covered and materials to review but the actual material was interesting and helpful. Found the pdf very helpful to review while taking the final test.
4
Member's Profile
Great review of segregation of duties. All businesses need some form of this to ensure fraud is minimized. Thank you for this detailed listing of what is needed.
5
Member's Profile
Course provides very good explanations on the importance of SOD and it provides good examples on proper segregation of duties in different areas of the business.
5
Member's Profile
Easy to follow, interesting and educational. The course was well-paced and there was enough time to complete all of the videos and tests without feeling rushed.
5
Anonymous Author
We do a lot of SOD within my current company and I didn't understand why before this course. Explained a lot and helped me understand why we do certain things.
5
Anonymous Author
This was exactly the course I was looking for as new auditor. I will comeback to review the material before I perform an audit related to SOD as a refresher.
5
Anonymous Author
Nice outlines. The main concept of segregation of duties is clearly presented. The examples are very helpful. I am able to relate the examples to my job.
5
Member's Profile
Very useful - thought I knew Segregation of duties like the back of my hand but this made me aware of some control weaknesses in our current processes
5
Member's Profile
A good resource tool to exam our current staffs' backup plan and job roles. This is also a refreshing course of internal control and fraud detection.
4
Anonymous Author
The concepts of separation of duties is always an important one for any organization. Appreciate the discussion on the intricacies of small business.
5
Anonymous Author
Great refresher course. I will reevaluate the sign off and reconciliation functions with one of my smaller clients. Too much control in one area.
4
Member's Profile
Provides a valuable review of sod basics. Upon review of inventory process of SOD I know I need to make some modifications in our company.
5
Member's Profile
Very pleased with this course. Different types of segregation of duties per function were explained. Easy to follow and engaging presenter.
5
Anonymous Author
Good review of basic segregation of duties at the core organization level. A good refresher for those who haven't reviewed in a while.
5
Member's Profile
This course was a good reminder of best practices in SOD. Thank you for the valuable information as well as the Core Processes handout.
5
Member's Profile
Good overview of SOD. .
4
Anonymous Author
Great review! It takes perfects examples of day to day business operations that are standard across many types of different companies.
4
Anonymous Author
This course is helpful and the topics are well organized. The presenter is very engaging and provided a lot of valuable information.
5
Anonymous Author
I thought this did a nice job of covering important areas in the business cycle and giving ideas but not going into so much detail.
5
Anonymous Author
This course is interesting for many people with different professions. He gives an idea of the fundamentals of division of duties
4
Member's Profile
Very good review of segregation of duties considerations. Several typos in the slides take this course from a 5 star rating to 4.
5
Member's Profile
Being in a small organization, this was a great review on SOD. As a manager it is good to keep these in mind when reorganizing.
5
Anonymous Author
Very relevant course and material for the duties of auditors. Necessary to understand the importance of segregation of duties.
5
Anonymous Author
The course provides a great overview of segregation of duties and provides a very helpful breakdown by specific process area.
5
Anonymous Author
I like how the instructor takes you through specific cycles to demonstrate proper SOD and problems if there is a lack of SOD.
5
Anonymous Author
This course covered in depth material which Lynn broke down in an easy to understand delivery. Very informative and helpful!
5
Anonymous Author
Great review of segregation of duties with many examples and details. Excellent review course and knowledgeable instructor,
5
Member's Profile
Very good course about proper segregation of duties. Helpful when looking at what kind of potential a company has for SOD.
5
Anonymous Author
I highly recommend this course to others. The instructor is very easy to follow and she gives great examples and insight.
5
Anonymous Author
This course was a simple but effective explanation of segregation of duties. I recommend this for "ALL" business owners!
5
Member's Profile
Perfect fundamental review of segregation of duties, including many examples that apply to all types of organizations.
5
Anonymous Author
As the controller for a small company, segregation is difficult, but very necessary. This course explains why and how.
4
Member's Profile
So much material but it was covered effectively. I'm glad I can go back and review the slides. The materials were good.
5
Member's Profile
I liked that we can keep the materials for review for a later date, and that it was properly broken up into sections.
5
Anonymous Author
Great refresher on segregation of duties. Slides were a bit confusing but the presentation made things crystal clear!
5
Anonymous Author
Slides were very helpful to nail the main ideas. The video was very interactive, and the examples were very helpful.
5
Member's Profile
Well done, particularly the end recap describing what sort of fraud the segregating actions are intended to prevent.
5
Member's Profile
Good information to know and very informative; great instructor. Slides were wonderful and informative as well.
4
Member's Profile
Practical insights into the challenges and importance of implementing a proper system of segregation of duties.
5
Member's Profile
this was a great course. It help me gain a better understanding of SOD. It made it a complex topic seem simple.
4
Member's Profile
Good course to provide refresher on SOD issues with some examples. Liked the succinct nature of this course.
4
Member's Profile
Useful course on SOD and more comprehensive as covering common functions and possible conflicts within those.
5
Anonymous Author
In depth explanation of how Segregation of Duties affects all the flows in operations in short amount of time
5
Anonymous Author
I liked the course in the video format. The presentation highlights key aspect of the SOD and easy to follow.
5
Member's Profile
This course provides a good basic understanding of segregation of duties, especially as a refresher course.
5
Anonymous Author
This was a well laid out class that gives a good overview of segregation of duties and why it's important.
5
Member's Profile
interesting topic... i believe in a small firm this could be hard to implement but i cant wait to try it.
4
Anonymous Author
It was good to refresh my memory of segregation of duties within an organisation and what to look out for.
5
Member's Profile
I enjoyed this course thoroughly. I learned a lot and I appreciate the help. I will use this in my future.
5
Member's Profile
good material, good instructor ...a lot of easy way to read points ...thinking in taking the certification
5
Member's Profile
Very good explanation of what Separation of Duties is, why it is important and how to ensure it exists.
5
Anonymous Author
Classic Illumeo course that teaches a lot in a little time. Really work checking out if you need CPE.
5
Anonymous Author
The course covered the topics described adequately with plenty of examples laid out by the instructor.
5
Member's Profile
good overview with appropriate review and exam questions. easy to follow and reinforces key concepts.
4
Anonymous Author
Lynn always delivers material in a clean manner and offers good examples to help with understanding.
5
Member's Profile
I appreciate that the service allows me to independently study, review, test and obtain quality CPE.
4
Member's Profile
Excellent information and examples on proper segregation of duties. Easy to follow and understand.
5
Anonymous Author
Good basic course for an overview of segregation of duties. Easy to understand with simple examples.
4
Anonymous Author
The course covered the high risk areas for SOD and provided a good basis for understanding the risk.
5
Anonymous Author
A good course for someone who is new to the concepts of segregation of duties. Instructor was good.
4
Member's Profile
Good information but I did feel that the presentation was too detailed and could be more concise.
4
Anonymous Author
Simple examples in the main accounting areas of internal control. Easy to understand and follow.
5
Member's Profile
Course is very easy to follow along with - lots of information presented in an orderly fashion.
5
Anonymous Author
Very clear explanations and good examples of improper segregation of duties resulting in fraud.
5
Member's Profile
I'm very impressed with the material, and the professional manner in which it was presented.
4
Member's Profile
Excellent overview of the need for and implementation of basic separation of duties controls.
3
Anonymous Author
Great beginning course for Segregation of duties. Does well at breaking down each department.
4
Anonymous Author
I thought the course was informative and gave good considerations of areas to implement SODs.
4
Anonymous Author
Good presentation. The material was completely covered in a concise and understandable way.
5
Member's Profile
The helped to refresh and test the SOD considerations for many different business processes.
4
Member's Profile
This was a good course. The format of the course made it easy to understand the principles.
5
Member's Profile
The course touches all aspects of SOD I liked most of the course materials. No surprises
5
Member's Profile
Discussing the specific business cycles and related SOD in those cycles was very helpful.
5
Member's Profile
This course should be required viewing by anyone involved in risk or assurance functions!
3
Member's Profile
I enjoyed this contents of the review process and the course was delightful. Well done.
5
Anonymous Author
Instructor was able to provide real world examples and moved the course at a good pace.
5
Anonymous Author
I liked that there was a summary in the video of what we learned throughout the course
5
Member's Profile
Some new perspectives on the segregation of duties process for me. Enjoyed the class.
4
Member's Profile
I like the examples given in this course, which are detailed, and very realistic.
5
Member's Profile
Good introduction to Segregation of Duties, nicely sectioned off by functional areas.
5
Member's Profile
Good overview of the Segregation of Duties method of review and of why its important
5
Anonymous Author
There is a lot of useful information, especially the SOD grid per business function.
4
Anonymous Author
Subject matter was straightforward and easy to understand. Good examples throughout.
5
Member's Profile
Course met my expectations. Lesson was presented in an easy to understand format.
5
Member's Profile
Enjoyed class. Thought it was clear and concise. I would recommend this course.
5
Member's Profile
Course was easy to follow and met all expectations from given course description.
4
Member's Profile
The course was well taught, easy to follow, and has a lot of good information.
5
Member's Profile
A very comprehensive course. Contains a lot of important and useful information.
4
Anonymous Author
lots of knowledge to keep a company running smoothly with 'checks and balances'
5
Member's Profile
Very informative, loved how the course was broken down into specific processes.
5
Anonymous Author
Great course for verifying SOD in an organization, basic concepts but thorough.
5
Member's Profile
A great overview of controls in different areas. Examples were easy to follow.
4
Member's Profile
The course helped me to understand the concept of segregation of duties better
5
Member's Profile
Course provided valuable information is it relates to segregation of duties.
5
Member's Profile
Good information. Very helpful. Worth the time it takes to listen and review.
5
Anonymous Author
Great course. Sharp concise, very strong principles. Golly, what a course.
5
Anonymous Author
A good guide on separation of duties in different aspects of the business.
5
Member's Profile
I think this course gave a solid in depth review of segregation of duties.
5
Anonymous Author
Content well organized. Practical examples. Effective presentation skills.
5
Anonymous Author
Good course. Each aspect was explained well, and overall very informative.
5
Member's Profile
Course was very good and on point. Easy to navigate through the sessions.
4
Member's Profile
Informative. and interesting recommend for an overview of SOD to any org.
5
Anonymous Author
This course helps you understand the importance of segregation of duties.
5
Member's Profile
An excellent course over proper segregation of duties in an organization.
5
Anonymous Author
I loved this course! Segregation of duties is vital to an organization.
4
Member's Profile
This course is very helpfull and effective. I think it is a good start.
5
Anonymous Author
basic course well-presented. good reminders of the importance of SOD.
4
Anonymous Author
Thorough overview of the topic, well presented and thought provoking.
5
Member's Profile
Nice SOD overview with good presentation visuals for future reference.
4
Member's Profile
Great course to brush up on the basics of SOD learnt for the CIA exam.
3
Anonymous Author
Interactive and fun learning environment with different SOD scenarios
5
Anonymous Author
Good summaries and examples relevant to all of our unique workplaces.
3
Member's Profile
Some of the course slides did not match the verbal presentation.
5
Member's Profile
This is a good refresher course as we enter risk assessment season.
5
Anonymous Author
Great presentation of internal controls at all operating levels.
4
Member's Profile
good overall review of all facets of the accounting lifecycle.
5
Member's Profile
perhaps share links to materials that may be helpful reference
5
Member's Profile
Great examples and very practical demonstration of the topic.
4
Anonymous Author
The speaker provides good examples of segregation of duties.
5
Member's Profile
it is very useful to review SOD in core business processes.
5
Anonymous Author
The instructor made clear points which were easy to follow.
5
Anonymous Author
The content was a relevant refresher on the basics of SoD.
5
Anonymous Author
This was a great control overview of business process SODs
4
Anonymous Author
Very good and thorough introduction to the subject matter
4
Member's Profile
I really liked the specific examples used in this course.
4
Member's Profile
Good information which is well presented and explained.
4
Member's Profile
Several good examples of how to evaluate SOD by process.
5
Anonymous Author
A good review of the segregation of duties by function.
5
Anonymous Author
Great course. Very thorough overview of all processes.
4
Anonymous Author
Great overview of SOD with cycle-specific insights.
5
Member's Profile
Materials are super helpful and easy to understand.
5
Anonymous Author
A great refresher course on segregation of duties.
4
Member's Profile
Comprehensive and informative
4
Member's Profile
Good content and refresher.
4
Anonymous Author
Good
4
Member's Profile
none
5
Member's Profile
na

Prerequisites

Course Complexity: Intermediate

Suggested completion of the course titled "Segregation of Duties for the Office of the CFO

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  4:25Introduction to Segregation of Duties for Core Business Processes
  8:09SOD Basics
  2:06Defining SOD
Segregation of Duties
  14:07Risks of Inadequate SOD
  1:47SOD by Roles
  14:02SOD Roles Procure to Pay
  5:06SOD Roles Payroll
  4:57SOD Receipting Function
  4:32SOD Disbursement Function
  7:35SOD Purchasing Function
  6:55SOD Treasury
  5:02SOD Payroll
  3:41SOD Inventory
  10:19Control Mechanisms
CONCLUSION
  1:56Summary
CONTINUOUS PLAY
  1:34:39Segregation of Duties for Core Business Processes
SUPPORTING MATERIALS
  PDFSlides:Segregation of Duties for Core Business Processes
  PDFSegregation of Duties for Core Business Processes Glossary/Index
REVIEW AND TEST
  quizReview Questions
 examFinal Exam