Using a principal-agent model this research examines the efficacy of a fundamental internal control-separation of duties (SOD). The firm is the principal and non-managerial employees are agents. Three cases are studied. The first case is a bench-mark single-agent model. The second case is a SOD...

The ability to understand, document, and suggest improvements for a business process is an important skill for an accounting student for the following reasons: (1) efficient business processes give businesses a competitive advantage; (2) business process analysis provides auditors with an...