Answer: Strong internal controls are essential for accurate transaction recording and fraud detection.
Trend: Companies with effective internal controls see fewer errors and misstatements in financial reporting.
List: Focus on improving internal controls to enhance accuracy and reduce fraud risk.
Finding Text
Maintaining functional internal control is critical in ensuring proper recording of transactions and to prevent material misstatements. Additionally, proper internal control is paramount in detecting fraud and errors in reporting.
Corrective Action Plan
Management agrees and is planning on migrating from Little Green Light and moving solely to QuickBooks Online to track all revenue streams.