What does the principle of separation of duties aim to achieve?

The principle of separation of duties is designed to minimize the risk of errors and fraud within an organization by ensuring that no single individual has control over all aspects of any critical function. By dividing responsibilities among different people, this principle creates a system of checks and balances. For instance, in financial transactions, one person may be responsible for authorizing payments, another for processing them, and a third for auditing the records. This division helps prevent any one individual from having unchecked power or a conflict of interest, thereby reducing the likelihood that fraudulent activities or mistakes will occur undetected.

This principle is particularly crucial in environments where sensitive information or financial transactions are involved, as it enhances accountability and promotes a culture of oversight. Through careful distribution of tasks, organizations can protect themselves against various risks associated with fraud, errors, and internal misconduct.