Certified Information Systems Auditor Practice Exam 2025 – All-in-One Guide to Master Your CISA Certification!

In an audit context, segregation of duties is a fundamental principle aimed at preventing fraud and errors by ensuring that no single individual has control over all aspects of any financial transaction or process. This entails dividing responsibilities among different individuals so that the tasks of authorizing, processing, and reviewing transactions are assigned to separate people. By implementing this division of responsibilities, organizations can significantly reduce the risk of unauthorized actions, collusion, or mistakes, thereby enhancing the integrity and accuracy of their financial reporting.

This framework is an essential control mechanism that promotes accountability and transparency; if one person is responsible for multiple functions, there is an increased likelihood of fraud or significant errors going unnoticed. Consequently, segregation of duties not only serves as a deterrent to malfeasance but also contributes to better operational efficiency and effective audits, since independent checks and balances are established.

While other options may refer to issues that can arise in organizational structures, they do not specifically capture the primary focus of segregation of duties, which centers on risk minimization related to individual control over critical processes in order to safeguard the organization’s assets and ensure compliance with regulatory requirements.