Finding Text
Criteria
The Academy’s internal control structure should ensure that the accounting data is appropriately calculated, reconciled, and reported in accordance with generally accepted accounting principles.
Condition
The Academy’s accounts required significant adjustments to the general ledger to properly reflect the appropriate balance after the books and records were presented for audit.
Cause/Effect
While the accounts were reconciled throughout the year, the reconciliations completed had certain instances where the year-end reconciliation process didn’t match to the general ledger.
Recommendation
The Academy should institute monthly and yearly closing procedures to ensure that all accounts are reconciled and match the general ledger.