Conditions that increase risk of material misstatements/ fraud in internal control

• Lack of segregation of duties 
• Too much trust 
• Approval of documents without review 
• Lack of verification of transactions after they have been entered in the system
• Lack of reconciliations
• No follow-up when things appear “questionable” or “not reasonable”
• Lack of control over cash/petty cash
• Lack of control over purchasing of materials/supplies
• Lack of knowledge of policies and procedures