PROBLEM TREE ANALYSIS: AUDIT OBSERVATION MEMORANDUM (AOM): ITS CAUSES AND REMEDIES

Decreased public Difficulty obtaining Damage to

Financial losses Legal liability
trust funding reputation

The roots are the causes of the problem- The AOM, while the trunk represents the contributing factors why schools have AOM’s, and the leaves and branches are the potential
Central Problem effects which will lead us to think of solutions or remedies to avoid AOMs

Complex or outdated systems and Fraudulent intent

Lack of training or experience
Immediate causes procedures

Secondary causes Errors in accounting or financial Inefficiencies or waste in Overspending activity

operations
reporting

Weaknesses in internal Non-compliance with laws Fraud or other illegal

Root Causes and regulations
controls activity