Financial Segregation of Duties Evaluator (Excel XLSM)

Segregation of Duties (SoD) is an important control that reduces the risk of errors and fraud. How can you keep track of the many different transactional duties in a large organization? The segregation of duties matrix is an invaluable tool in this regard. SoD risk is a concept that refers to the likelihood that an SoD conflict will result in a financial loss, legal liability, or compliance penalty for a business. By not implementing segregation of duties you are putting the company at risk. One of the biggest risks is the increased risk of fraud. When one person is given the sole responsibility of two conflicting tasks the risk of fraud increases. Having more than one person carry out these tasks reduces this risk.

This document can be used to evaluate the following areas:

1. Expenditure Cycle
2. Fixed Assets Cycle
3. Inventory Cycle
4. Payroll Cycle
5. Revenue Cycle
6. Treasury Cucle
7. Processing Cycle
8. Financial Closing and Reporting
9 General Computer Controls

Segragatioin of Duties is a control and, as such, should be viewed within the frame of risk management activities. This key element must be kept in mind when assessing potential conflicts and designing rules.

Processes must be thoroughly analyzed and some choices have to be made to detect and resolve potential conflicts. If any conflicts are left, some compensating control must be put in place to properly manage the associated risk.