Finding Text
Condition Found:
During our audit, we noted the following:
• Adjustments were necessary for accounts receivable, scholarships, deferred revenue and a prior period adjustment for net assets and assets held for sale.
Criteria:
The design and implementation of policies and procedures in place should be sufficient enough for the reconciliation of significant financial accounts and transaction classes to prevent and detect material misstatements in the financial statements.
Cause:
The University currently does not have a strong process for making sure the ending balances are correct before providing the trial balance for audit.
Possible Asserted Effect:
In fiscal year 2024, we proposed adjustments to accounts such as accounts receivable, assets held for sale, net assets and various income and expense items.
Recommendation:
We recommend that the University put in place necessary controls and procedures to ensure that all transactions are properly classified.
Management Response:
Randall University will put processes in place to adjust accounts to the actual balance before the audit begins.