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Internal Controls: Segregation of duties with adaptations

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Segregation of Duties (SoD) and other classic internal controls such as management oversight have been adapted to consider technology. Compare/contrast the classic controls with their adaptations for technology. Have one or more of the classic controls become obsolete when applied in technology? On the flip side of that, describe any new controls that have become necessary because of technology.

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Solution Summary

Your response is 314 words and gives you some idea of the types of controls that are relaxed with technology and the new controls that are needed with technology.

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Segregation of duties is a classic control and still important in an automated environment made possible with today's technology. However, the segregation of duties has been less important in some ways (obsolete is a bit too strong). Computers can do duties that would normally be incompatible from a standpoint of achieving good internal controls. For instance, a person should not be able to record the cash receipt and post the entry to the accounts receivable, because these serve as a check on each other. However, in an ...

Solution provided by:
Carol Sargent, PhD
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  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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