Question: Kimberly
There could be many controls in place in an accounting department and trustworthy management members running sections of the accounting department but that doesn't mean controls can be missed intentionally or inadvertently. If an authorizing manager is suddenly out and checks need to be written or payroll needs to be approved, items can inadvertently be missed. If an authorizing manager finds themselves in a difficult financial position and believes they can get away with potentially even small issuances of funds, they may create a seemingly insignificant invoice and approve for payment. Even companies with great controls and intentions can and have found themselves finding out that there can be people that figure out how to circumvent the system or those that just unintentionally miss a step in a process.