Segregation of duties is a key component of effective internal control, which

means that a process is divided among many individuals. As such, no individual is

permitted to exploit the situation for personal benefit or other impropriety. Although

segregation of duties is common in larger, more hierarchical organizations, it can be

difficult for smaller businesses with limited staffing and resources.

Newly available data will shed light on the challenges that smaller businesses

face regarding job segregation. The following section analyzes the segregation of duties

content vulnerabilities revealed by smaller firms according to Sarbanes-Oxley (SOX)

section 404(a) for the fiscal year 2008. Management is required by SOX section 404(a)

to evaluate the efficacy of internal control over financial reporting and to disclose any

material deficiencies in internal control. Smaller reporting entities are not yet required to

comply with SOX section 404(b), which includes an auditor's opinion on the

organization's internal controls. (Gramling, Audrey A., et al., 2010)

https://digitalcommons.kennesaw.edu/cgi/viewcontent.cgi?article=2304&context=facpubs

Gramling, Audrey A., et al. "Addressing Problems with the Segregation of Duties in

Smaller Companies." CPA Journal 80.7 (2010): 30-4

As one of the control procedures, segregation of duties is used to ensure that no

employee within an organization is burdened with undue obligations that could impact

the overall performance level. Two forms of segregation of duties are often used in

businesses: accounting functions segregation and information technology segregation.

This research aims to examine the effectiveness of segregation of accounting functions

within a company in risk management.

Accounting feature segregation within a business essentially categorizes the

work done by employees into five primary duties: authorization, storage, documentation,

inspection, and execution (Vaassen et al., 2009). In general, a company's segregation

of duties is illustrated by a limited number of multiple roles assigned to specific

employees. It is preferable if a different individual performs each of the responsibilities

mentioned above. (Rentor et al., 2017).

Rentor, A. B., Setiawan, A., & Lusanjaya, G. (2017). Segregation of Job Duties and

Types of Personalityin Responding the Risks. Jurnal Dinamika Akuntansi, 9(1), 49-62