Finding Text
Program: All programs
Criteria or Specific Requirement: No one employee should have access to multiple phases of a transaction. Payroll change reports should be reviewed by someone other than the employee preparing them.
Condition: Due to the size of the staff, certain accounting functions are performed by the person who initiates the transactions. This results in a lack of segregation of accounting function responsibilities.
Cause: The Organization’s accounting department is small which resulted in too many accounting functions with two staff persons.
Effect: The lack of segregation of duties increases the possibility that a material misstatement in the entity’s financial statements will not be prevented or detected and corrected on a timely basis.
Questioned Costs: There were no questioned costs.