This phrase describes scenarios where financial inaccuracies occur specifically due to incorrect validation or endorsement. For example, an overpayment issued due to a faulty approval process falls under this category. The focus is on the direct causal link between the flawed certification and the resulting incorrect payment.
Understanding this concept is critical for establishing accountability and developing robust preventative measures. By pinpointing the certification stage as the source of the error, organizations can implement targeted controls and training to mitigate future financial discrepancies. This precision allows for efficient allocation of resources toward process improvement, ultimately contributing to greater financial accuracy and integrity.
