Finding Text
Criteria – Recording of transactions in accordance with GAAP. Condition – Material audit adjustments were required to prevent the Organization’s financial statements from being materially misstated. Cause – Major fixed asset capitalized and depreciated along with revenue and vacancy adjustments were not made. These items are generally deferred for year-end review and auditor input. Effect – These material adjustments could have resulted in a material misstatement of the Organization’s financial statements. Recommendation – We recommend the Organization review the current year audit adjustments and attempt to adjust accounts to actual in the future.