Any Finance employee observing an instance of control failure or failure of a process to comply with Generally Accepted Accounting Procedures (GAAP), other industry standards, or regulatory requirements should fill out and submit the Financial Nonconformity Report Template. An AC1060-1 NONCONFORMITY REPORT can also result from Internal Audit findings or an external auditor’s Letter to Management on Internal Controls.
The Nonconformity Report should be filled out in the following manner:
Briefly state the requirement, including a title and reference number, where appropriate;
Describe the condition observed and where/how it deviates from the requirement; and
Check the appropriate box to indicate whether or not a corrective action request (CAR) was also initiated.