Finding Text
Due To/Due From Accounts Not Reconciled Timely
Material Weakness
Condition: Due to/due from accounts have not been reconciled or trued up for an extended period, making it difficult to determine the accuracy of the year-end balances.
Criteria: Adequate internal control functions over the financial reporting process.
Cause: Oversight by management.
Effect: Inaccurate financial reporting that compromise the accuracy and transparency of financial reporting between the entities.
Recommendation: We recommend implementing a formal reconciliation process, ensuring that due to/due from accounts are reviewed and adjusted at least on a quarterly basis.
View of Responsible Official and Planned Corrective Action: Management agrees with the finding. See corrective action plan.