Answer: The Organization lacks adequate separation of duties due to a limited number of employees, increasing the risk of errors or fraud.
Trend: This issue is common in smaller organizations where staffing constraints hinder proper internal controls.
List: Recommended follow-up includes exploring options for cross-training staff, implementing oversight measures, and considering temporary or part-time help to strengthen controls.
Finding Text
Condition: The Organization is limited in employees and therefore has a deficiency in separation of duties related to cash receipts, cash disbursements, recording, and reconciling.
Corrective Action Plan
The Organization plans to hire additional personnel along with additional controls implemented by management and supplemental reviews by the Board of Directors to increase separation of duties related to accounting functions.