What consequences from inadequate separation of duties?

Inadequate separation of duties can lead to significant security risks, including fraud and embezzlement, as individuals may have unchecked access to sensitive information or financial transactions. This lack of controls can also result in errors going undetected, leading to inaccurate financial reporting and compliance issues. Ultimately, it undermines organizational integrity and can damage stakeholder trust, as well as exposing the organization to legal and regulatory penalties.