If two elements of a transaction are processed by different individuals, each person provides a check over the other. Separation of duties also acts as a deterrent to fraud or concealment because collusion with another individual is required to complete the fraudulent act. Separating responsibility for physical security of assets from related record keeping is a critical control.

For example, it is usually better for one individual to process cash receipts through cash registers and another person to independently count the cash and prepare paperwork for recording register sales in the University accounting system. Therefore, when comparing cost versus benefits of separating responsibilities, management should consider that benefits often include operating efficiencies in addition to improved internal control.