When implementing segregation of duties, what is primarily being established?

Establishing segregation of duties primarily aims to create a controlled workflow that significantly reduces the risk of fraud. By dividing responsibilities among different individuals, the organization ensures that no single person has complete control over any critical process or transaction. This separation of tasks creates a system of checks and balances, making it more difficult for fraudulent activities to go unnoticed. For example, if one employee handles the transaction process, while another is responsible for reviewing and approving those transactions, it becomes much harder for someone to commit fraud without detection.

While increased work efficiency, improvement of employee satisfaction, and expansion of business operations are important considerations for any organization, they do not capture the primary objective of segregation of duties, which is fundamentally about enhancing internal controls and minimizing the potential for dishonest behavior in processes involving financial transactions or sensitive information.