Answer: There is insufficient separation of accounting duties, allowing individuals to control both assets and records.
Trend: This practice increases the risk of errors or fraud within financial transactions.
List: Implement stronger controls to ensure different people handle assets and records, and review transaction processes regularly.
Finding Text
There is a lack of segregation of accounting duties that enables the same individuals to have access to both physical assets and the related accounting records or to all phases of a transaction.
Corrective Action Plan
The duties will be segregated as much as possible, and the Board of Directors will remain involved in reviewing the financial statements of the Commission.