Finding Text
Condition: The Organization has policies and procedures to document transactions and the means to authorize and record these transactions. Examples would include vouchers which accompany each vendor expense invoice and employee time sheets. Key documentation typically requires multiple sign-offs including the performance of critical procedures, thus enhancing the system of internal controls. Criteria: The Organization?s system of controls requires documentation of the performance of critical procedures in the recording and recognition of expenditures. The procedures are to be documented on a voucher which is required to accompany and be attached to each authorized vendor invoice. Cause: Audit procedures tested a sample of expense vouchers. Approximately 17.5% of the expense vouchers tested omitted being marked as to posting in the accounting system.Effect: The lack of procedure documentation on vouchers supporting expense transactions mitigates the system of internal controls. Failure to document critical procedures may be perceived that the procedure was not performed. In the event that the procedure was indeed performed but not documented, the procedure, in this case posting of vendor expense invoices, may be duplicated, thus resulting in errors by overstating program expenses. It is noted that no actual duplication of recording vendor expense vouchers was observed.