Unit 10 - MSP

tigger37

This is what I have come up with so far on my MSP for the weaknesses in segregations of duties in my workplace.

1) Customer Service Supervisor can both buy and sell in the company.
2) Customer service supervisor can raise both credit notes and invoices
3) Customer service supervisor can create/change customer details and raise credit notes
4) Customer service supervisor can change/create vendors on the system and create purchase orders.
5) The assistant accountant can make payments and process bank statements and bank reconciliations.
6) Customer Service Supervisor can create/change customer details and raise sales invoices
7) Customer Service Supervisor can create a sales order and invoice the sales order
8) Financial Controller can calculate depreciation and make depreciation adjustments

The Implications I have are:
1) This could lead to the employee colluding with companies and suppliers to receive money or goods
2) This is a clear conflict of duties. This could lead to a fictious invoice being raised to a customer and then issue a credit note to the same customer and have payment sent to them.
3) Another clear conflict of duties. One employee should not have access to create or amend a customer plus raise invoices or credit notes. This is a high risk for fraud as a fraudulant person could be created and their own bank details inserted or changed after it was originally looked at. They could also then issue a shell invoice to this fraudulant person and mark up the invoices so that the payment coming to them would be higher.
4) This is another high risk conflict which could lead to fraud within a company. This person could set up a fuctious supplier and then enter in their own bank details for payment to go to them. They would then create a fraudulant purchase order and send a fictious invoice to enable the payment to go to them.
5) Another high risk area for conflicts in duties. I have the ability to make payments from any of our bank accounts, including our foreign banks. I also perform the bank reconciliations and if these are not signed off or carefully reviewed, this could lead to embezzelments of funds from the company into my own bank account. I should not be able to perform all of these transactions and they should be segregated.
6) The Financial controller should be segregating this job with the Assistant Accountant. The implications of the Financial Controller doing both shows an increased risk of mis-stating depreciation due to incorrect calculations.

As we only have a staff of 2 at the moment, I'm not sure how to go about doing a cost benefit analysis or what recommendations I can suggest as the one I think of would be to bring in temporary help. We are on a complete hiring any help freeze at the moment so that is not an option.
Can anyone help please?