The Scenario
A small retail business has one person who receives inventory, records it in the system, approves supplier payments, and reconciles the bank account. The owner suspects stock losses but cannot prove it.
The Brief
Identify the control weaknesses in this setup. Propose a redesigned process with proper segregation of duties, even with a small team (you can propose splitting tasks, not necessarily hiring).
Deliverables
- A list of at least 5 control weaknesses with the risk each one creates
- A redesigned process showing which tasks should be separated and who should do what
- One compensating control for a situation where full segregation is not possible with a small team
Submission Guidance
Segregation of duties means no single person should authorise, record, AND have custody of an asset. In small businesses, compensating controls (spot checks, management review) fill the gap.
Submit Your Work
Your submission is graded against the rubric on the right. If you pass, you get a public Badge URL you can share on LinkedIn. There is no draft save, so work offline first and paste your finished response here.