Finding Text
MATERIAL WEAKNESS
Finding 2023-002: DUPLICATE OF ACCOUNTING RECORDS
Repeat Finding from Prior Year
No
Condition
The entity changed its accounting practices by transitioning from a single system to three separate systems. During this conversion, much of the accounting data was duplicated, making it challenging to audit the records effectively.
Criteria
Accounting records should be maintained accurately and consistently to facilitate reliable financial reporting and auditing processes
Cause
The transition to multiple accounting systems resulted in the duplication of entries, which has compromised the integrity of the financial records.
Effect
The duplication of accounting records increases the complexity of the audit process, creating a higher risk of errors and misstatements in the financial statements. This condition can hinder the entity’s ability to provide a clear and accurate representation of its financial position.
Questioned Costs
Not applicable
Sampling Method
Not applicable
Recommendation
The entity should review and streamline its accounting practices to eliminate duplication during the transition to the new systems. Implementing a more robust data reconciliation process will help ensure the accuracy of the financial records and facilitate a smoother audit process.
Response and Views of Responsible Officials
See Corrective Action Plan and Response to Findings.