Corrective Action Plans

Browse how organizations respond to audit findings

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include; late Audit reporting, identifying areas of risk of material misstatement such as making
include; late Audit reporting, identifying areas of risk of material misstatement such as making
timely required deposits to the reserve accounts including Residual Receipts, failing to review
timely required deposits to the reserve accounts including Residual Receipts, failing to review
prior year audit reports or audit findings, Proper and accurate reporting on a consistent and
prior year audit reports or audit findings, Proper and accurate reporting on a consistent and
ongoing basis to the most current HUD chart of accounts.
ongoing basis to the most current HUD chart of accounts.
b. Create or review existing controls to minimize risk, such as a system to review the financial
b. Create or review existing controls to minimize risk, such as a system to review the financial
statements general ledgers, bank reconciliations and all major fiscal management areas including
statements general ledgers, bank reconciliations and all major fiscal management areas including
occupancy and the submissions of all reports to HUD.
occupancy and the submissions of all reports to HUD.
c. Monitor the controls on systematic and continuous basis.
c. Monitor the controls on systematic and continuous basis.
The purpose of the above is to detect & address risk of material misstatement or Fraud at the earliest
The purpose of the above is to detect & address risk of material misstatement or Fraud at the earliest
Responsibility: The Upper Management and the Accounting Manager is responsible for providing the training and assigning certain accounting classes that can be done online.
Responsibility: The Upper Management and the Accounting Manager is responsible for providing the training and assigning certain accounting classes that can be done online.
Timeline: Recommendations should begin within 30 days of the audit report’s issuance.
Timeline: Recommendations should begin within 30 days of the audit report’s issuance.
Resources: Online HUD accounting Webinars or Self Study classes. Example AICPA, AHACPA, or Wester CPE
Resources: Online HUD accounting Webinars or Self Study classes. Example AICPA, AHACPA, or Wester CPE
Corrective Action Plan
Corrective Action Plan
Action: Create a control to that will cause early and frequent monitoring of Surplus Cash. Management should emphasize accountants to compute and report surplus cash to upper management on a monthly basis. Management should review the surplus cash calculations on a monthly basis.
Action: Create a control to that will cause early and frequent monitoring of Surplus Cash. Management should emphasize accountants to compute and report surplus cash to upper management on a monthly basis. Management should review the surplus cash calculations on a monthly basis.
Responsibility: The Accounting Manager is responsible for providing the training and assigning certain accounting classes that can be done online regarding the calculation of Surplus Cash and the ultimate requirement to deposit Surplus cash to Residual Receipts.
Responsibility: The Accounting Manager is responsible for providing the training and assigning certain accounting classes that can be done online regarding the calculation of Surplus Cash and the ultimate requirement to deposit Surplus cash to Residual Receipts.
Timeline: Training to begin within 30 days of the audit report’s issuance.
Timeline: Training to begin within 30 days of the audit report’s issuance.
Resources: Online HUD accounting Webinars or Self Study classes. Example AICPA, AHACPA, or Wester CPE
Resources: Online HUD accounting Webinars or Self Study classes. Example AICPA, AHACPA, or Wester CPE
Management has already instituted some actions to address the findings. The owner of the management company has now assumed the responsibility to emphasize to the accounting department to monitor and report surplus cash frequently. Also, this incident appears to be a first time occurrence for this e...
Management has already instituted some actions to address the findings. The owner of the management company has now assumed the responsibility to emphasize to the accounting department to monitor and report surplus cash frequently. Also, this incident appears to be a first time occurrence for this entity. Further the upon subsequent events review it was noted that the residual receipt deposit was made on 11/18/2025.
Overall Corrective Action Plan to Address findings 1 and 2
Overall Corrective Action Plan to Address findings 1 and 2
Management utilizing the Internal Audit Function should revise its internal control system as follows:
Management utilizing the Internal Audit Function should revise its internal control system as follows:
a. Identify major areas of risk of material misstatement and/or fraud. As an example, the areas may
a. Identify major areas of risk of material misstatement and/or fraud. As an example, the areas may
include; late Audit reporting, identifying areas of risk of material misstatement such as making
include; late Audit reporting, identifying areas of risk of material misstatement such as making
timely required deposits to the reserve accounts including Residual Receipts, failing to review
timely required deposits to the reserve accounts including Residual Receipts, failing to review
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