Top 10 Audit Findings

[Jim Kaplan]

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Over the years I have seen similar audit findings on different audit projects. Regardless of the industry or sector that I have worked in I see recurring themes such as a lack of separation of duties, lax security, weak controls over authorizing expenditures, reconciliations not performed etc.

In 1998 information taken from the 40th annual National Council of University Research Administrators conference held in Washington, D.C. they identified the Top 10 Audit Findings. That list is available on the Web at http://www.ora.med.ucla.edu/Aud10.htm

The findings included (I left one out because it is specific to colleges and universities):

1. Inadequate Segregation of Duties - Strong internal control requires the appropriate segregation of responsibilities for authorization, physical custody of assets, and related record keeping.

2. Inadequate, or untimely, review of monthly ledger reports - This represents the final detective control in our system of accounting.

3. Inappropriate Access/Lack of Security - Management should provide safeguards for physical objects, restricted information, critical forms, etc.

4. Inadequate Authorization of Expenditures

5. Lack of Appropriate Authorization of Time Records

6. Inadequate Knowledge of Policies and Procedures

7. Lack of Control Over Capital Equipment

8. Untimely Deposit of Receipts

9. Personal Telephone Calls

In order to generate a discussion I thought I would pose the questions to the list in terms of what are your "top" findings and to what extent are they recurring?


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