Finding Text
Account Coding and Approvals Condition: We noted that many transactions did not contain account coding or approval prior to being recorded in the accounting system. We did note that invoices were review prior to payment being made, however. Criteria: In accordance with accounting principles generally accepted in the United States of America and generally accepted Government Auditing Standards, organizations are to record and approve transactions prior to entering them into the accounting system. Cause: Management has not performed these procedures to ensure the transactions were properly entered. Effect: Without management ensuring the proper coding and approval, it is possible that transactions could be entered incorrectly into the accounting system. Recommendation: We recommend that the Organization require that financial transactions be coded and approved in a policy to ensure they this is performed on a routine basis.