Core Issue: The entity's small size leads to insufficient separation of responsibilities, increasing the risk of errors or fraud.
Impacted Requirements: Key internal controls are compromised, which may violate compliance standards and best practices.
Recommended Follow-Up: Consider implementing cross-training or outsourcing certain functions to enhance oversight and accountability.
Finding Text
Due to the small size of the entity, there is a lack of segregation of duties.
Corrective Action Plan
We will continue to have the Board of Directors review the financial activity of the entity. Due to the small size of the organization, it is not economically feasible to achieve a complete segregation of duties.