Can you provide an example of a time when you identified a significant internal control weakness during an audit and how you addressed it?

Example of Identifying Internal Control Weakness During an Audit

During one of my previous audit engagements, I identified a significant internal control weakness related to cash handling procedures in the finance department. The focus keyword for this example is "internal control weakness."

Upon further investigation, I found that there was a lack of segregation of duties within the finance team, which could potentially lead to fraud or errors in financial reporting. To address this issue, I recommended implementing a rotation policy where responsibilities for cash handling tasks would be regularly rotated among team members to ensure accountability and reduce the risk of fraud.

Additionally, I proposed conducting regular training sessions on proper cash handling procedures and reinforcing the importance of adhering to internal controls. These initiatives were aimed at strengthening the internal control environment and minimizing the risk of financial irregularities.