Finding Text
Condition: As part of our audit, the auditor proposed adjusting entries to ensure that the financial statements were not materially misstated. Criteria: Management of the Village should ensure that controls are properly designed and implemented when closing the books and records and preparing for the year-end audit. This will ensure that the financial statements presented are free of material misstatement. Cause: The current system of internal control is not properly designed to ensure that the financial statements are not materially misstated. Effect of Potential Effect: The effect of this deficiency is that misstatements may not be identified and corrected on a timely basis. Repeat Finding, if applicable: Yes, similar finding was identified during last year. Recommendation: Management of the Village should review its processes and procedures and related controls to ensure that the trial balance is properly closed when provided to the auditors for audit procedures. View of Responsible Officials and Planned Corrective Action: Management feels due to the nature of operations that the current system is cost effective for a project of this size; however, they will consider adjusting accounts where possible in the future.