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Segregations_of_duties_&_internal_contro
Segregations of duties & Internal Controls

Segregation of duties is an essential feature of your internal controls.
 

Lack thereof may put your company at serious risk.

Examples of segregation of duties are:

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  • The General Manager/CEO must have no control whatsoever over the tasks and work of the internal auditors;

  • The Operations Department must not be linked to seller management and must not be able to authorise the level of advances to seller;

  • The Credit Management department must not be involved in the sales process;

  • Once a sale is concluded, the Sales and Marketing department must no longer be involved with the seller;

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Client management reports to Credit Management and must not be involved in the seller's credit risk assessment. It must also not be involved in any operations transactions.

Schermafbeelding 2019-01-29 om 19.14.35.

You can find extensive information on this topic in Part Two of the Guide to the Establishment of a Factoring Operation.

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