Finding Text
Separation of Duties
Criteria: An effective internal control structure of an organization will include procedures and actions to:
1. Protect its assets against theft and waste.
2. Ensure compliance with the organization's policies, procedures and statutory requirements.
3. Evaluate the performance of personnel to promote efficient operations.
4. Ensure accurate and reliable operating and accounting data.
Separation of duties requires that someone other than the employee responsible for safeguarding the asset must maintain the accounting records for that asset. When an
organization separates duties of the employees; it minimizes the probability of an error or
irregularity occurring and not being timely detected.
Condition: Due to the small size of the accounting department of the School District, the
possibility of adequate separation of duties over certain transaction cycles is limited.
Recommendation: While we recognize that it is impractical for the School District to
achieve complete separation of duties over all transaction cycles within the School District,
it is important that the Board be aware of the chance that errors and irregularities may not
be timely detected.