Finding Text
Condition
There were substantial adjusting entries that had to be made to accounts receivable, accounts payable, accrued expenses, and payroll tax liability general ledger accounts. All of the general ledger accounts were out of balance for the year ended June 30, 2024 except the cash accounts. Criteria
The general ledger accounts should be reconciled to their correct balances on a monthly basis to have proper control.
Cause
There is an outside contracted service providing accounting service and the balance sheet accounts, except cash, were not reconciled to their proper balance at June 30, 2024.
Effect
There is a weakness in internal control over all general ledger accounts when they are not reconciled to their proper balance on a monthly basis.
Recommendation
We recommend that all accounts in the general ledger be reconciled to their proper balance on a monthly basis.
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