Does anyone have a good source for GAAP separation of duties AR and AP-check lists or general guidelines---Not sure why the company's CPA isn't on this---but just keeps telling them not in compliance--not my forte--
not even giving them a place to start
That would be my first guess but I don't know if they provide anything in braille.
I'm pretty sure everything this company does is in braille--this would be a case of the head cheese after reading the non compliance was--bypassing the CFO--hiring another body--then approaching the rank and file with the instructions to "separate the duties"-and return a list to him--new person starts in 3 days
I punched out of my tax time clock and punched in on my audit time clock. If you are being told what I think you are being told, don't worry about it. These days it is pretty standard to issue a report saying there is a lack of segregation of duties for smaller entities. As long as the client is aware that they don't have a set of perfect internal controls because of its size, the auditor has done his job and can then sleep at night.
Not "worried"--a little irritated I keep getting called instead of their CPA--I used to handle almost all the execs personal returns--basically contracted a data entry person to them for a year or so --who is now their employee--like some "family" businesses--they just don't seem to realize that occasionally you have to hire someone that actually knows how to do the job--they have reached the size at this point it should be a bigger concern than it is
actually am plugging for the "efficiency expert" consulting gig--so have to be sociable at the moment
You basically try to separate out the duties of authorizing, executing and recording transactions. At a minimum I think the bank statement should go to the owner unopened and he should look over the deposits and copies of cleared checks to determine if they are reasonable and appear to be legitimate.
CFO currently handles that--purchase orders are generated independently as well - billing and receivables are apparently the main issue--same person also handles payables-deposits-but CFO issues checks--Quickbooks has been locked down except for functions each employee needs--Sales and Purchasing departments are pretty horrid--most of what they issue needs "fixed"--which again is falling back to the "same" person
Does the CFO have access to all aspects of the accounting system and is also receiving the bank statement and balancing the bank?
I believe so--they are supposed to hire in a new CFO with experience--but too cheap at the moment to do so---current CFO is supposed to return to IT manager--he has worked wonders though--when he started everything was 3-4 years behind and a total disaster--he has put all this in place to date-he is the one I have most access to
Seems like the owner, not the CFO should receive the bank statement and review its contents, NOT the CFO. This would be at least some separation of duties for the CFO position. The CFO might be honest but the set up is such that a dishonest CFO would have all the opportunities needed to misappropriate funds.
he actually understands that--like I said--he is the "outside" shareholder--"owner" shareholder--really has no interest other than being reported to-is fond of "junkets"-other "family" shareholders are what got them in this mess--If i remember--CFO is second tier shareholder--believe 4 tiers in all--hopefully they will bring in an outside person--at moment there really is not a higher level management person to provide the check and balance needed
