Finding Text
2022 ? 002 Type of Finding: ? Material Weakness in Internal Control over Segregation of Duties Condition: The internal control system does not allow for proper segregation of duties. Criteria or specific requirement: A good system of internal control provides for a proper segregation of the accounting functions. The Company does not have the proper segregation of duties over cash receipts and disbursements, accounts receivable, accounts payable, journal entries, and reconciliations. Effect: The bookkeeper has the ability to make deposits, reconcile accounts, and enter transactions. This could result in errors being made and going undetected. Cause: Proper segregation is not always possible in a small organization, but limited segregation to the extent possible can and should be implemented to reduce the risk of errors or fraud. Repeat Finding: Yes Recommendation: We recommend the Organization develop internal control policies to implement segregation of duties to the extent possible. Views of responsible officials and planned corrective actions: There is no disagreement with the audit finding.