In manual procedures, the segregation of duties ________.

• A. reduces risk
• B. increases risk by creating blind spots
• C. increases risk by reducing accountability
• D. can only be done safely through information technology

Answer: (A)

Segregation of duties creates checks and balances by splitting responsibilities so no single person can complete a critical process from start to finish. In manual procedures, this means one person initiates a task, another reviews or approves it, and a third handles recording or reconciliation. This separation reduces risk by making fraud and errors harder to conceal, because multiple independent steps must align and be authorized before actions are finalized. It also improves accountability, since each participant’s actions leave a trace and require appropriate oversight.

Saying it increases risk by creating blind spots isn’t accurate because the opposite is true—the multiple eyes and approvals reduce blind spots. Saying it increases risk by reducing accountability is also incorrect because distributing duties actually strengthens accountability through clear responsibility and traceability. And it isn’t true that this can only be done through information technology—manual processes can implement proper separation of duties with well-defined roles and documented signoffs, though IT can support and automate parts of the control.