Finding Text
Criteria: An entity’s internal control should be designed to prevent or detect material misstatements. Performing timely and accurate reviews of the financial statements is a key element to maintaining an effective system of internal controls. Condition: During the course of our audit, various accounts were incorrectly reported on September 30, 2024. These items were not originally identified by Every Woman's Place, Inc.’s internal control in a timely fashion. Cause: Internal controls and the related reviews by management did not identify the reporting issue. . Effect: There were three proposed audit entries that were required to correct misstatements resulting in a change in net assets of approximately $169,000. Failure to review related balances increases the risk of error, omission, fraud and abuse in the financial statements and related activities. Recommendation: We recommend that the Organization enhance its internal controls over financial reporting with steps such as a review of statement of financial position accounts and revenue recognition relative to GAAP standards. Management Response: See corrective action plan