Final answer:
Segregation of duties control plan in business ensures that no single person has control over all aspects of a financial transaction to prevent fraud and errors, by separating functions like authorization, custody, and accounting, but typically not including policy making.
Step-by-step explanation:
The segregation of duties control plan is a vital component of internal controls in business processes to prevent fraud and errors. This control involves dividing responsibilities among different individuals to ensure that no single person has control over all aspects of any financial transaction. The primary objective is to prevent conflicts of interest, fraud, and errors. Segregating duties typically includes separating transaction authorization, custody of assets, and the accounting or record-keeping. However, the function that is usually not separated because it does not directly process the transaction is policy making. This is because policy making establishes the guidelines and framework within which the other functions operate, but does not directly engage in the processing of events or transactions. For effective segregation of duties, it is critical to understand that the focus is on events and transactions rather than overall business strategies or policies.