What is a potential outcome of improperly applying separation of duties?

Improperly applying separation of duties can significantly heighten the likelihood of fraud or errors within an organization. Separation of duties is a key principle in security and internal controls, designed to prevent any one individual from having control over all aspects of a transaction. When duties are not properly separated, it opens the door for individuals to manipulate processes without oversight, leading to potential fraudulent activity. For example, if the same person is responsible for both approving transactions and handling the cash, they could easily misappropriate funds without detection.

Furthermore, the lack of adequate separation can result in unintended mistakes. When one person handles multiple roles, the chances of errors increase due to oversight or lack of checks and balances. This undermines the integrity of operations and can lead to serious financial repercussions or regulatory penalties.

In contrast, the other options suggest outcomes that are not aligned with the principles of separation of duties. Increased efficiency or flexibility might seem appealing, but they come at the cost of greater risk, which is antithetical to the objectives of maintaining secure and reliable processes.