Four eyes: Difference between revisions
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imported>Doug Williamson (Classify page.) |
imported>Doug Williamson (Add quote - source - The Treasurer - May 2022 - issue 2, 2022 - p8.) |
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''Security systems''. | ''Security systems''. | ||
The 'four eyes' principle is that no employee should be in a position both to commit and to conceal fraud or errors | The 'four eyes' principle is that no employee should be in a position both to commit and to conceal fraud or errors in the usual course of their duties. | ||
The principle applies both to intentional acts or omissions, and to accidental ones. | |||
The four eyes principle is an example of the segregation of duties. | |||
:<span style="color:#4B0082">'''''Segregation of duties - dealing, settlement and reporting'''''</span> | |||
:“The front office does the deal, but doesn’t settle the money. | |||
:The back office settles the money, but doesn’t do the deal. | |||
:Historically, the middle office is a control function that does the reporting and ensures that system controls are enforced." | |||
:''Naresh Aggarwal, associate policy and technical director, Association of Corporate Treasurers, May 2022.'' | |||
== See also == | == See also == | ||
* [[Back office]] | |||
* [[Deal]] | |||
* [[Duality principle]] | * [[Duality principle]] | ||
* [[Front office]] | |||
* [[Middle office]] | |||
* [[Reporting]] | |||
* [[Segregation of duties]] | * [[Segregation of duties]] | ||
* [[Settlement]] | |||
[[Category:Treasury_operations_infrastructure]] | [[Category:Treasury_operations_infrastructure]] | ||
Latest revision as of 16:51, 9 May 2022
Security systems.
The 'four eyes' principle is that no employee should be in a position both to commit and to conceal fraud or errors in the usual course of their duties.
The principle applies both to intentional acts or omissions, and to accidental ones.
The four eyes principle is an example of the segregation of duties.
- Segregation of duties - dealing, settlement and reporting
- “The front office does the deal, but doesn’t settle the money.
- The back office settles the money, but doesn’t do the deal.
- Historically, the middle office is a control function that does the reporting and ensures that system controls are enforced."
- Naresh Aggarwal, associate policy and technical director, Association of Corporate Treasurers, May 2022.
