Читать книгу Wiley Practitioner's Guide to GAAS 2020 - Joanne M. Flood - Страница 129

1 Certain characteristics or circumstances may increase the susceptibility of assets to misappropriation. For example, opportunities to misappropriate assets increase when there are the following:Large amounts of cash on hand or processed.Inventory items that are small in size, of high value, or in high demand.Easily convertible assets, such as bearer bonds, diamonds, or computer chips.Fixed assets that are small in size, marketable, or lacking observable identification of ownership.

2 Inadequate internal control over assets may increase the susceptibility of misappropriation of those assets. For example, the misappropriation of assets may occur because there is the following:Inadequate segregation of duties or independent checks.Inadequate oversight of senior management expenditures, such as travel and other disbursements.Inadequate management oversight of employees responsible for assets; for example, inadequate supervision or monitoring of remote locations.Inadequate job applicant screening of employees with access to assets.Inadequate record keeping with respect to assets.Inadequate system of authorization and approval of transactions (for example, in purchasing).Inadequate physical safeguards over cash, investments, inventory, or fixed assets.Lack of complete and timely reconciliations of assets.Lack of timely and appropriate documentation of transactions, for example, credits for merchandise returns.Lack of mandatory vacations for employees performing key control functions.Inadequate management understanding of information technology, which enables information technology employees to perpetrate a misappropriation.Inadequate access controls over automated records, including controls over and review of computer systems events logs.