Segregation of duties prevents a single person from both committing an error or fraud and concealing it. In small organisations where full segregation is not possible, compensating controls such as management review are applied. Authorisation matrices in IT systems should be designed on this principle.
Related terms
Internal controlProcesses and controls designed by management to provide reasonable assurance regarding the effectiveness of operations, the reliability of financial reporting and compliance with laws and regulations.IT general controlsControls over access management, change management, IT operations and system development that ensure information systems operate reliably.Occupational fraudDeceptive acts carried out knowingly to obtain an unjust or illegal benefit; misappropriation of assets and fraudulent financial reporting are its main types.Compliance auditAn examination of whether an organisation's activities are carried out in accordance with the relevant laws, regulations, contracts or internal rules.Compliance officerThe authorised person responsible for running the compliance programme for the prevention of money laundering and terrorist financing at an obliged entity.Compliance programmeThe full set of policies, procedures, controls, training and monitoring activities an organisation puts in place to ensure compliance with laws and internal policies.
Last updated: October 22, 2026 · This definition is for general information only.