1 Segregation of Duties (SOD)

havana techno, prog drum and bass · 4:28

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Lyrics

[Verse 1]
In the world of finance where the numbers flow
There's a golden rule that you need to know
One person alone should never hold the keys
To authorize, record, and custody

When Sarah can approve and write the check too
And lock up the cash when her work is through
That's a recipe for risk we can't ignore
Three duties split keeps fraud from your door

[Chorus]
Segregation of duties, keep them apart
Authorize, record, custody - three separate hearts
When one person does it all, that's where danger lies
Split the power, share control, that's how trust survives

A-R-C, remember the three
Never let them meet in one employee
Segregation of duties, it's the foundational way
To keep your business safe another day

[Verse 2]
But small business owners know the truth so well
You can't always split when you've got just a few
Your bookkeeper handles both the books and payments
That's where compensating controls break through

Owner reviews every check above a limit
Monthly bank statements straight to your hands
HR runs payroll but you approve the final
These backup measures help you take a stand

[Chorus]
Segregation of duties, keep them apart
Authorize, record, custody - three separate hearts
When one person does it all, that's where danger lies
Split the power, share control, that's how trust survives

A-R-C, remember the three
Never let them meet in one employee
Segregation of duties, it's the foundational way
To keep your business safe another day

[Bridge]
In the digital age with role-based access
Configure your workflows to create the gaps
Set approval thresholds, require second login
Technology helps where staff size limits

From accounts receivable to cash deposits
From purchase orders to expense reports
Every transaction needs its checks and measures
Internal controls are business treasures

[Chorus]
Segregation of duties, keep them apart
Authorize, record, custody - three separate hearts
When gaps appear, compensating controls
Fill the spaces, protect your goals

A-R-C, remember the three
Foundation stone of financial security
Segregation of duties, it's the proven way
To build strong controls that are here to stay

[Outro]
Three duties separate, or compensate the risk
That's the lesson you don't want to miss
Segregation of duties, your financial guard
Making fraud prevention less than hard

← 1 The Classic Bookkeeper Schemes | 2 Dual Control & Authorization Thresholds →