The segregation of authorization from the recording of transactions and custody of assets is an essential internal control process.

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Segregation of duties is an important internal control process which helps reduce the risk of fraud or error by separating key duties such that no one person has too much control over a particular function. The segregation of authorization from the recording of transactions and custody of assets is particularly important as it helps ensure that transactions are properly authorized and recorded, and that assets are safeguarded from theft or misappropriation. By separating these functions, companies can help prevent or detect errors or fraudulent activity that might otherwise go unnoticed.

The Segregation of Authorization from the Recording of Transactions and Custody