Segregation of duties is a key internal control principle that aims to prevent fraud and errors by dividing responsibilities among different individuals. This means that no single person should have control over all aspects of a financial transaction. For example, one person may handle the cash receipts, while another is responsible for recording them in the accounting system. By implementing segregation of duties, organizations can reduce the risk of unauthorized actions and ensure that checks and balances are in place. This practice is essential in various sectors, including finance, government, and healthcare, to maintain integrity and accountability in operations.