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How can a deficiency in internal controls negatively impact other direct or indirect controls? The failure is that the Assistant Controllers did not adequately review
How can a deficiency in internal controls negatively impact other direct or indirect controls?
The failure is that the Assistant Controllers did not adequately review the Vendor Change Form that his subordinate submitted, resulting in $2M being sent to the wrong account. The company has $8M in materiality and the controls in place were found to only be effective for 5% of changes.
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