Internal Controls Agenda - Quotes

Quotes - Excerpts from Internal Audit findings:

"cash receipts were handled in a careless manner which permitted losses to occur"

".. discrepancies would have been identified if the employee performed [the] job duties in a careful and accurate manner.'

"... the employee was aware that the .. accountant did not reconcile revenue to FRS and that losses could go undetected"

"...it is unknown how many employees may have keys to .. the drawers and cabinets containing cash and inventory. .....The [department] does not maintain a listing as to the assignment of departmental keys....."

'There is no reconciliation or accountability of the .. inventory."

"A lack of segregation of duties exists in the cashiering and accounts receivable functions, and the receiving and recording functions."

"Check payments received by mail are not logged when received.."

"Monthly FRS reports are not reviewed by the responsible person...This permitted unauthorized transactions to occur without detection."

"...a shadow bookkeeping system ...is not reconciled to FRS..."

" .... written record[s] of the safe combination [are] in unlocked ...drawers."

"Payroll and FRS reports were not reviewed for errors or misuse of funds."

"Internal Controls over incoming .... payments were nonexistent..."