Answer: There's a problem with how accounting duties are divided, allowing some individuals to handle both assets and records.
Trend: This issue increases the risk of errors or fraud due to insufficient checks and balances.
List: Implement clear roles and responsibilities to ensure proper segregation of duties in accounting.
Finding Text
There is a lack of segregation of accounting duties that enables the same individuals to have access to both physical assets and the related accounting records or to all phases of a transaction.
Corrective Action Plan
The duties will be segregated as much as possible, and the City Council will remain involved in
reviewing the financial statements of the City.