§ 03Exception taxonomy and root cause
Each of the 551 exceptions was tagged to a root cause and re-validated
against management's compensating controls. 537 cleared under
compensating evidence; 14 did not.
Exception drill-down · root cause analysis
| Root cause |
Count |
$ value |
Compensating control |
Disposition |
| PO created after invoice received |
141 |
$612K |
Manager sign-off email |
Cleared |
| Quantity received < quantity invoiced (≤2%) |
187 |
$842K |
Within tolerance + GR confirmed |
Cleared |
| Price variance (within ±$25) |
125 |
$561K |
Vendor master price-list |
Cleared |
| Recurring services (utilities) |
28 |
$184K |
Blanket PO + monthly cert |
Cleared |
| Emergency repairs (after-hours) |
14 |
$94K |
After-fact PO + property mgr memo |
Cleared |
| One-time vendor · no PO |
42 |
$248K |
CFO approval letter on file |
Cleared (mfg) |
| Duplicate vendor master entries |
6 |
$41K |
Pending vendor consolidation |
Open |
| No PO, no compensating evidence |
8 |
$73K |
None found |
Open |
| Total exceptions |
551 |
$2.66M |
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