Finding Text
Section II Financial Statement FindingsFinding 2022-001 and 2021-001Condition: In order to comply with generally accepted accounting principles (GAAP) and Government Auditing Standards certain accounting an administrative responsibilities should be segregated. One person has access to all books and records. Due to the size of the Organization, proper segregation of duties cannot be achieved without the cost exceeding the benefit.Criteria: Generally accepted accounting principles, and Government Auditing Standards require management of Joyce Network, Inc. to establish policies to safeguard assets.Cause: Joyce Network, Inc. lacks the size to adequately segregate duties.Effect: Because of inherent limitations in any internal control system, errors, irregularities or instances of non-compliance may nevertheless occur and not be detected. Also, projection of any evaluation to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate.Recommendation: No recommendation. Due to the size of the Organization, proper segregation of duties cannot be achieved without the cost exceeding the benefit.