Question

What is the concept of Segregation of Duties in an IT system?

1) A process of separating the duties and responsibilities of individuals to prevent fraud and errors in an IT system.
2) A process of combining the duties and responsibilities of individuals to increase efficiency in an IT system.
3) A process of assigning the same duties and responsibilities to multiple individuals in an IT system.
4) A process of randomly assigning duties and responsibilities to individuals in an IT system.

Answer 1

Segregation of Duties in an IT system is about separating responsibilities to prevent fraud and errors. While clear divisions of labor are important, sometimes flexibility is needed for efficiency, as posited by the restaurant hostess example.

Step-by-step explanation:

The concept of Segregation of Duties in an IT system refers to option 1: A process of separating the duties and responsibilities of individuals to prevent fraud and errors. This principle is a fundamental element of internal controls that reduces the risk of errors or intentional fraud within an organization. Bureaucracies typically have clear divisions of labor, where each task is specialized. For instance, in an academic setting, psychology professors focus on teaching psychology, while the Office of Admissions handles financial aid forms, exemplifying a thoughtful and commonsense division of duties. However, in the case of the restaurant where the hostess avoids assisting with backed-up food service, the question is raised whether sticking rigidly to such a division is efficient or smart. This illustrates that while segregation of duties is crucial, flexibility can sometimes be necessary to ensure efficient operations.