Finding Text
#2022-001 ? Significant Deficiency ? Segregation of Duties Criteria Segregation of duties is critical to effective internal control because it reduces the risk of mistakes and inappropriate actions. Condition During the course of the audit, it was determined that the Finance Director has editing access to QuickBooks while also being responsible for opening the mail and recording/depositing checks received. Cause This condition is not uncommon for similar size organizations. Effect There is always the potential for errors or irregularities that would not be detected by employees in the normal course of performing their assigned functions. Questioned Costs None Perspective Information The Finance Director received and opened the mail daily. Identification as a repeat finding There was no similar finding in the prior year. Recommendation We recommend someone other than the Finance Director, preferably the CEO or another office staff, open the mail and record/scan the checks received into a check log. View of Responsible Official The Executive Administrative Assistant is now tasked with and responsible for opening the mail and recording the checks into a check log. The Executive Administrative Assistant will forward checks to the financial services team for additional action steps.