Hi
My view would be as you say. You should not make decisions which put you into conflict with your DPO specific responsibilities - particularly monitoring compliance. That should not be a problem even in a small organisation. SARs may be signed off by the IAO. Head of HR (or delegee) for a staff SAR for example.
Of course it may be in practice you have done all or most of the work so we must accept that it is unlikely you would find non-compliance if you audited but that does not render it pointless if you are genuine about assignment of responsibilities.
That kind of conflict is inherent in the system. In a large organisation I have just drafted GDPR compliant policies and procedures. I have recommended and advised they be adopted. I will have no role in the adoption or authorisation process. If, as I anticipate, they accept my recommendation (subject to correcting typos and howlers) that does not put me out of a job as a DPO. It would be ridiculous to say that a DPO cannot monitor compliance with a policy which was adopted on his advice.
On the other hand you always need to be alert to the possibility of conflict. Without detracting from the above there may well be cases which put you in real difficulty. In a large organisation you can usually call on your internal legal advisers or auditors or in health your Caldicott Guardian. In a smaller organisation I would perhaps be looking for a mutual support agreement with similar.
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