DEFEND!

Poor internal controls

Lack of proper authorization

No separation of authorization, custody, record keeping

No independent checks on performance

Lack of clear lines of authority

Inadequate documentation

Weaknesses

Transaction Authorization: The hiring process is informal, and sometimes

proceeds without adequate involvement by higher-level supervisors. Decisions are
dominated by one or a few individuals. Roles and responsibilities of middle
management are unclear. Management does not provide necessary resources.
Lines of responsibility are unclear or unnecessarily complicated for the size and
activities of the entity.
Supervision: Regular supervision does not exist or is ineffective. Employees are
frustrated and feel they have nowhere to go with issues.