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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 30, 2017

Included In Certifications

This course is included in the following Expert Certifications:

17 CoursesInternal Controls Certification

  1. Internal Controls: What Every Financial and Accounting Professional Needs to Know
  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

29 Reviews (152 ratings)Reviews

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
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
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
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
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
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
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.
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
This course is interesting for many people with different professions. He gives an idea of the fundamentals of division of duties
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
Member's Profile
Perfect fundamental review of segregation of duties, including many examples that apply to all types of organizations.
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.
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.
4
Member's Profile
Excellent information and examples on proper segregation of duties. Easy to follow and understand.
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
Good overview of the Segregation of Duties method of review and of why its important
5
Member's Profile
Enjoyed class. Thought it was clear and concise. I would recommend this course.
4
Member's Profile
Informative. and interesting recommend for an overview of SOD to any org.
3
Member's Profile
Some of the course slides did not match the verbal presentation.
5
Member's Profile
it is very useful to review SOD in core business processes.
4
Anonymous Author
Very good and thorough introduction to the subject matter
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