Finding Text
Finding 2024 – 001: Audit Journal Entries
Condition: During audit fieldwork, our testing resulted in significant audit adjustments in order to present
materially accurate financial statements.
Criteria: A good system of internal controls would provide for accurate representations of adjusted account
balances for all District accounts prior to audit fieldwork.
Cause: Year-end entries related to various accruals and other items were required in order to accurately
present the District’s financial statements.
Effect: The District’s financial statements were not fully adjusted prior to audit fieldwork.
Recommendation: A vital process of effective internal controls is the review and subsequent adjustment
of general ledger balances. This review and adjustment will aid in the appropriate budgeting and
management of the District’s financial activities and resources.
Corrective Action Plan: The Interim Director of Finance, along with staff, will review year-end
adjustments as part of the audit preparation process and work to reduce the number of entries proposed by
the auditors and prepare fully adjusted financial statements prior to audit fieldwork.