Finding Text
2023 – 1 General Journal Entries - The Town posts general journal entries to numerous accounts
each month in the general ledger to re-class and adjust monthly postings which are prepared and
recorded by the same individual. In many cases, a month end adjustment is recorded correcting
numerous different items. General ledger adjustments present additional risks of misstatement.
Without proper backup for adjustments made to the trial balance, it would be easy for material
amounts of improper recognition to occur.
Criteria: Journal entries should have the proper documentation and supporting backup
Cause: Unknown
Effect: Without proper backup for adjustments made to the trial balance, it would be easy for
material amounts of improper recognition to occur.
Recommendation: The Town of Middlebury, Vermont should implement a system for recording
journal entries and the necessary backup for those journal entries. Management Response: The Town of Middlebury, Vermont is working on developing a system of
documenting journal entries, with proper back up and support.