Manager, Corporate Compliance

Segregation of duties – a summary:

A fundamental element of internal control is the segregation of certain key duties. Segregation of duties consists of controls that represent the separation of incompatible business duties and/or responsibilities. Adequate segregation of duties reduces the likelihood that errors (intentional or unintentional) will remain undetected by providing for separate processing by different individuals at various stages of a transaction and for independent reviews of the work performed. More specifically, segregation of duties helps to ensure that one person is not able to:

• Conceal errors/irregularities;

• Cause the inaccurate or incomplete reporting of financial information; and

• Commit fraud, theft, or other illegal acts.

In addition, the segregation of duties provides a safeguard to staff against the possibility of unintentional damage through accident or incompetence - 'what they are not able to do (on the system) they cannot be blamed for'.

Finally, the Sarbanes-Oxley Act of 2002 (“SOx”) specifically states the need for good segregation of duties controls. As part of its assessment regarding internal controls, management