Quiz on Segregation of Duties and Company Duty Chart

What does Segregation of Duties (SoD) primarily aim to prevent?

• Inefficient workflows

• Employee dissatisfaction

• Fraud and errors

• Increased operational costs

Which of the following is NOT an element of SoD?

• Record Keeping

• Transaction Approval

• Authorization

• Custody

What is the purpose of a Company Duty Chart (CDC)?

• To reduce employee training

• To eliminate job roles

• To outline specific roles and responsibilities

• To increase employee workload

How does SoD enhance oversight within an organization?

• By eliminating managerial reviews

• By increasing transparency through multiple individuals handling tasks

• By allowing one person to control all tasks

• By reducing the number of employees

Which of the following best describes the element of 'Verification' in SoD?

• Checking that actions are correct and legitimate

• Handling physical assets

• Approving transactions

• Maintaining records

What is a key benefit of standardizing the Company Duty Chart?

• Increased confusion among employees

• Higher operational costs

• Reduced employee accountability

• Clarity and consistency in operations

What should be done when segregation is less than optimal?

• Reduce managerial oversight

• Increase employee workload

• Implement compensating controls

• Ignore the issue

Which of the following is a responsibility of the Head of Department (HoD) regarding the Company Duty Chart?

• To create new job roles

• To ensure the chart is updated with changes

• To eliminate the duty chart

• To approve all transactions personally

How does SoD promote accountability?

• By allowing one person to handle all tasks

• By eliminating checks and balances

• By ensuring everyone knows their roles and responsibilities

• By reducing the number of employees

What is the relationship between SoD and a standardized duty chart?

• They are unrelated concepts

• Both are only for financial departments

• A standardized duty chart helps implement SoD

• SoD eliminates the need for a duty chart