Finding Text
Criteria: Internal controls should be in operation that provide reasonable assurance of the Club’s
ability to report financial data reliably in accordance with generally accepted accounting principles
(GAAP).
Condition: The Club’s accounting personnel must review and record all transactions related to the
current period in the general ledger in accordance with GAAP.
Cause: The Club did not review all transactions to identify and record significant receivable and
investment changes and the related revenue implications in its general ledger.
Effect: The Club had significant unrecorded or improperly recorded transactions in the general ledger
which resulted in a significant number of adjusting entries that were material to the financial
statements.
Response: See Corrective Action Plan.