Answer: There is insufficient separation of accounting roles, allowing individuals to manage both physical assets and their accounting records.
Trend: This issue increases the risk of errors or fraud in financial reporting.
List: Implement clear role divisions to ensure different individuals handle physical assets and accounting records.
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 Directors will remain involved in the financial affairs of the Company to provide oversight and independent review functions.