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What is the segregation of duties?

The segregation of duties is associated with the safeguarding of an organization's assets and the topic known as internal control.

An example of the segregation of duties would be a company's requirement that the bank statement for its checking account must be reconciled by someone other than a person writing checks and someone other than a person recording amounts in the company's general ledger.

Another example of the segregation of duties is that the person handling cash cannot be the same person that records cash amounts in the company's ledgers.

By segregating or separating the duties, it becomes harder for dishonest actions to go undetected.