Finding Text
Criteria: An effective internal control structure of an organization will include procedures and actions to:1 Protect is assets against theft and waste. 2. Ensure compliance with the organization's policies, procedres and statutaory requirements. 3 Evaluate the performance of personnel to promote efficient operations. 4 Ensure accurate and reliable operating and accounting data. Separation of duties requires that someone other than the employee responsible for safeguarding the asset must maintian the accounts. Effect: This potentioal effect of the internal control deficiency is an increase in the risk of fraud and undetected errors in the processing Recommendation: While I recoginize that it is impracitcal for the Town to achieve complete separation of duties over all transaction. The Council needs to be aware and enforce controls; Auditees Response - See the Towns response in their plan of action.