Identify the key segregation of investment-related duties and possible errors or fraud that can occur if this segregation is not present

The key segregation of duties for investments and the errors or fraud that they can prevent are:

Segregation of Duties:

• The initiation function should be segregated from the final approval function.
• The value-monitoring function should be segregated from the acquisition function.
• Responsibility for maintaining the securities ledger should be separate from that of making entries in the general ledger.
• Responsibility for custody of securities should be separate from that of accounting for the securities.
  
  Possible Errors or Fraud as a Result of Conflicts in Duties:
• Fictitious transactions can be made or securities can be stolen.
• Securities values can be improperly recorded or not reported to management.
• Concealment of a defalcation that would normally be detected by the reconciliation of subsidiary records with general ledger control accounts.
• Theft of securities can be concealed.