Answer: Expenses were not recorded in the correct period due to ineffective controls.
Trend: This issue could lead to ongoing inaccuracies in financial reporting if not addressed.
List: Implement stronger controls to ensure proper cut-off for expense accounting.
Finding Text
During the year ended February 29, 2025, controls were not designed effectively to ensure expenses were properly accounted for in the correct period. Controls should be put in place to ensure that proper cut-off is achieved.
Corrective Action Plan
The Organization has implemented new controls and staffing recently that are intended to remediate this matter.