Oracle segregation of duties - june 2016

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Oracle Segregation of Duties

Released June 2016

Download the Full Report here

Segregation of duties refers to the practice of dividing responsibilities among different employees so that no single employee has the ability to perpetrate and conceal a fraud. Ideally personnel performing any one of these functions — recording, approving, reconciling, or maintaining custody — would not also perform any of the other functions. Segregation of duties deters fraud because perpetrating a fraudulent act when incompatible duties are segregated requires collusion with another person. We undertook this audit to identify employees who have been granted Oracle system access that could allow them to perform conflicting business functions, increasing the risk of fraud.

We found:

• 84 employees in 16 departments who had capability to perform incompatible business tasks within Oracle
• 219 system access conflicts that could allow errors to go undetected or could allow an employee to perpetrate and conceal fraud
• About two-thirds of the conflicting task assignments related to payroll or purchasing
• The remaining conflicts related to accounting or cash receipts
• About 60% of the conflicts resulted from the assignment of a single responsibility with an internal conflict