Finding Text
2025–002 Type of Finding: - Material Misstatements Corrected During Audit Process Condition: Centennial Square does not have sufficient internal controls to detect material misstatement of the annual financial statements. Criteria or Specific Requirement: Internal controls should be in place to provide reasonable assurance that financial statements are free of material misstatement and prepared in accordance with U.S. GAAP. Effect: The absence of sufficient internal controls could result in undetected material misstatements in the financial statements, compromising their reliability and accuracy. Cause: Centennial Square lacks adequate internal controls to identify and correct material misstatements in their financial statements. Repeat Finding: No. Recommendation: Centennial Square should evaluate their financial reporting processes and controls, including the expertise of its internal staff, to determine whether additional controls over the preparation of annual financial statements can be implemented to provide reasonable assurance that the financial statements are free of material misstatement and prepared in accordance with U.S. GAAP. Views of Responsible Officials and Planned Corrective Actions: Management will evaluate controls, processes, and job duties during the upcoming year in order to ensure the control structure is sufficient to detect material misstatement to the financial statements.