Finding Text
Finding 2023-001: Year-End Close and Review - Condition and Criteria: Under GAAP, expenses and related liabilities should be recorded in the period in which they are incurred, regardless of when the invoice is received or paid. During our audit procedures over year-end accounts payable, we identified $416,492 in invoices related to the fiscal year ended September 30, 2023 that were not recorded until the subsequent fiscal year. This resulted in a material understatement of liabilities and fixed assets as of year-end.