You are receiving this letter because of the weakness in Pritchard Company’s current internal control system. I reviewed your business operations and identified several areas for improvement to guarantee the integrity and safety of your assets.
There is an inability to separate duties and responsibilities between personnel, departments, or even within the same department. This can create opportunities for fraud. In order to address this problem, I suggest implementing a job rotation between departments or assigning an independent review on critical tasks. In addition, management must monitor and restrict access to confidential data only to those with a need for it.
The second problem is that there are insufficient procedures to monitor and oversee certain processes like reconciliations or document approvals. Insufficient attention to this issue can lead to fraudulent activities. In order to resolve these problems, we need management personnel who are familiar with both accounting principles and controls.
Finally , it is important to have clear policies & procedures outlining who has authority over various transactions & decisions within the organization . This includes documenting specific roles , responsibilities & limits associated with each employee/department along with proper sign-off requirements on any documents requiring approval prior to implementation . Clear communication between departments concerning their respective roles should also be established so everyone understands their responsibilities & expectations when handling company finances ( i .e transferring funds , authorizing payments etc ) .
In summary , I believe these measures will help strengthen your current internal control system while promoting accuracy & transparency throughout all aspects of your business operations going forward . If you would like further assistance addressing any of these issues please do not hesitate to contact me directly – I’m always happy to help !
Please accept my sincere thanks.