Finding Text
Condition: During our audit, material adjustments were needed to adjust substantially all accounts on the statement of financial position. Criteria: Management should have procedures to verify the trial balance is complete in all material respects. Cause: Due to staff turnover and the transition to a new accounting system, the Organization had substantially all accounts on the statement of financial position with incorrect beginning balances. Effect: Various balances were causing the financial statements to be materially misstated. The audit firm noted the misstatements and presented adjusting journal entries to correct during the audit. Recommendation: We recommend the Organization continue to review of all balance sheet and income statement accounts at year end. Additionally we recommend continuing to improve processes and procedures around year and month end close. Views of Responsible Officials: Management agrees with the finding.