Finding Text
Criteria: An organization’s accounting duties should be adequately segregated among personnel. Condition: The Organization relies on a volunteer Treasurer who is solely responsible for many functions within the financial system. Cause: The Organization utilizes a volunteer Treasurer, and no additional documented oversight or review from the Board of Directors was performed. Effect: The auditors identified material misstatements in the initial financial records, which necessitated adjusting journal entries to ensure the accuracy of the financial statements. Recommendation: The Organization should implement proper monitoring and oversight regarding the review of bank statements, reconciliations, cancelled check images, and other direct charges to bank accounts, review of payroll registers, review of monthly financial statements, and review of monthly general ledger activity.