Finding Text
Criteria: In order to maintain the proper internal controls regarding the processing of invoices, the disbursements system should require proper approvals and support for disbursements.
Condition: The Organization had expenditures with no backup to support the disbursement. This resulted in a 5% error rate. Also, the Organization had several disbursements that had backup support; however, there was no approval of the disbursement.
Cause: Accounting staff turnover at the Organization.
Effect: The lack of proper controls increases the risk of error, fraud, misappropriation of assets and inaccurate financial reporting.
Questioned Cost: None