Finding Text
Lack of Segregation of Duties in Financial Accounting and Reporting. The organization has limited segregation of duties as they relate to the accounting function for the entity. As such, there are no controls to prevent and detect misstatements in this area. This type of item is typical of small entities, where the accounting staff is not large enough to establish sophisticated accounting controls. The entity’s internal accounting control is informal. This results in a situation where additional auditor assistance is needed in the form of year-end financial statement preparation. The organization is encouraged to continue Board of Directors involvement and oversight as well.