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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: October 13, 2018

Included In Certifications

This course is included in the following Certification Programs:

17 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

97 Reviews (406 ratings)Reviews

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
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
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
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
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
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.
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.
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
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.
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
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
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.
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
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
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.
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.
4
Member's Profile
Practical insights into the challenges and importance of implementing a proper system of segregation of duties.
4
Member's Profile
Good course to provide refresher on SOD issues with some examples. Liked the succinct nature of this course.
5
Anonymous Author
In depth explanation of how Segregation of Duties affects all the flows in operations in short amount of time
5
Member's Profile
This course provides a good basic understanding of segregation of duties, especially as a refresher course.
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.
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.
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.
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
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
This course should be required viewing by anyone involved in risk or assurance functions!
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.
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.
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.
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
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
Good course. Each aspect was explained well, and overall very informative.
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.
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.
3
Member's Profile
Some of the course slides did not match the verbal presentation.
4
Member's Profile
good overall review of all facets of the accounting lifecycle.
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.
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
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
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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