3.08

Control Environment

Principle 3 - Establish Structure, Responsibility, and Authority

Attribute 3.08 - Management determines what level of authority each key role needs to fulfill a responsibility. Management delegates authority only to the extent required to achieve the entity's objectives. As part of delegating authority, management evaluates each delegation for proper segregation of duties within the organizational structure. Segregation of duties helps prevent fraud, waste, and abuse in the entity by considering the need to separate authority, custody, and accounting in the organizational structure. As with assigning responsibility, those in key roles can delegate their authority for internal control to roles below them in the organizational structure.

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Jamie's Examples

June 25, 2025: Runbeck Contract Delivered

The inconsistent use of approval signatures for contract changes makes difficult to determine if the changes were approved. It cannot be determined the segregation of duties was maintained in those situations where approval signatures were not applied to the changed contract.

Election Anomalies

No Examples.