Employees
should not approve requests or transactions
that relate to self. This is applicable
even if the employee has delegated authority to approve the type of request
or class of transactions that are in question.
For example, an employee
has authority to approve Form 123; however, the employee may not approve
Form 123 when it relates to him or herself.
An adequate
internal control system
requires
that
duties be segregated in such a manner that no one person is placed in a
position to both initiate and conceal errors (unintentional mistakes) or
irregularities (acts of fraud).
Segregation of duties is a
control procedure, which ensures that no one person has control over all
parts of a transaction or request.
