Write a letter to danny peak, owner of pritchard company
I am writing to you regarding the weaknesses in the current internal control system at Pritchard Company. After my review of your operations, I have identified several areas that need improvement in order to ensure the safety and integrity of your assets.
First, there is a lack of segregation of duties between departments and personnel which can lead to opportunity for fraud or errors. To address this issue, I recommend implementing job rotation across departments or assigning independent reviews on tasks with critical responsibilities. Additionally, confidential information should be restricted to those who need access and access rights should be monitored by management at all times.
Second, there is inadequate oversight and monitoring procedures in place for certain processes such as reconciliations and document approvals. This leaves room for fraudulent activity if not adequately addressed. To remedy these issues we must ensure that these activities are reviewed regularly by management personnel with an understanding of both accounting principles and internal controls so they can identify potential discrepancies or irregularities which could potentially lead to misstatements in financial records .
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 !