What are the advantages of Segregation of Duties?

Segregation of Duties (SoD) enhances internal controls by ensuring that no single individual has control over all aspects of a financial transaction, thereby reducing the risk of fraud and error. It promotes accountability, as multiple individuals are involved in processes, making it easier to identify and rectify discrepancies. Additionally, SoD fosters a culture of transparency and compliance within an organization, as it necessitates collaboration and oversight among employees. Overall, it strengthens operational integrity and enhances the reliability of financial reporting.