Audit 370000

2024-001 Inadequate accounting and review procedures Repeat Finding: No Type of Finding: Material weakness Questioned Costs: $89,217 Criteria: Management is responsible for implementing review processes over transactions and financial statement close procedures. Condition: The Organization’s internal controls are not adequate to ensure that accounting records, specifically related to accounts payable, payroll liabilities, prepaid expenses and depreciation, are accurate and complete. Due to a lack of management oversight and review procedures, errors related to these areas were not identified and corrected in a timely manner. Cause: The internal controls over accounting processes and review procedures were not operating effectively. Effect: Material errors regarding accounts payable, payroll liabilities, prepaid expenses and depreciation were not detected or corrected in a timely manner by management. Recommendation: We recommend that the Organization strengthen its internal control over accounting process. Management should conduct a thorough review regularly to ensure accurate reporting for accounts payable, payroll liabilities, prepaid expenses and depreciation. Management’s Response: The Organization concurs with the finding and has begun implementing corrective action to address the identified issues, including enhancing internal controls and strengthening review procedures to ensure more accurate and timely financial reporting going forward.