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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. 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

57 Reviews (276 ratings)Reviews

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
Anonymous Author
A good course for someone who is new to the concepts of segregation of duties. Instructor was good.
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)
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 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
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
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
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
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
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
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
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
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
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
Very good explanation of what Separation of Duties is, why it is important and how to ensure it exists.
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.
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.
5
Member's Profile
This course should be required viewing by anyone involved in risk or assurance functions!
5
Member's Profile
Some new perspectives on the segregation of duties process for me. Enjoyed the class.
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
Enjoyed class. Thought it was clear and concise. I would recommend this course.
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.
4
Member's Profile
Informative. and interesting recommend for an overview of SOD to any org.
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.
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
I really liked the specific examples used in this course.
4
Member's Profile
Good information which is well presented and explained.
5
Anonymous Author
A good review of the segregation of duties by function.
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