Finding Text
: A properly designed internal control structure relies greatly on a proper segregation of duties between several individuals. In the ideal situation, duties related to initiating, authorizing, recording, processing and reporting financial data would be segregated so that there is a reasonable possibility that a material misstatement of the entity’s financial statements would be prevented or detected. In addition, the Project should have effective controls over the selection and application of accounting principles that are in conformity with generally accepted accounting principles. The application of such principles is necessary to ensure that the entity’s financial statements and notes to the statements are prepared in accordance with generally accepted accounting principles.