Answer: Youth Services Network, Inc. has inadequate separation of responsibilities for handling cash transactions.
Trend: This issue can lead to increased risk of errors or fraud in cash management.
List: Implement stronger controls by assigning different individuals to manage cash receipts, disbursements, and record-keeping.
Finding Text
Youth Services Network, Inc. has a lack of segregation of duties over cash receipts and cash disbursements and the subsequent recording of these transactions in the accounting records.
Corrective Action Plan
Youth Services Network, Inc. has implemented several compensating controls but simply cannot justify the expense of hiring additional staff to reach the standard of segregation of duties suggested.