Finding Text
Finding 2022-001 Condition: Employees have access to prepare and post journal entries in the general ledger system. Criteria: Internal controls should be in place that provide reasonable assurance that proper segregation of duties are implemented to prevent and detect misstatements. Cause: There are no procedures in place that require an employee who is independent of preparing and posting journal entries to review and approve the journal entries. Effect: Because of the lack of segregation of duties, there is an increased risk that intentional or unintentional errors could be made and not be detected in a timely manner. Recommendation: Procedures should be implemented that requires an employee who is independent of preparing and posting journal entries to review and approve all journal entries.