Apex: Intentional and unintentional misstatements
 
Control weakness

Potential effect on the financial statements

1
The procedures for clearing discrepancies are weak. Transactions may be lost and never posted or may be processed with errors.

Payables may be misstated.

2
Each of the three offices works independently: Regional offices do not inform local offices of transactions processed on their behalf, and NYCCC does not report invoices paid to the regional offices. Therefore, neither local nor regional offices can help control the completeness, authorization, and accuracy of recorded liabilities and subsequent payments.
Payables may be misstated.
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