Finding Text
Criteria The Organization?s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements for external purposes, in accordance with generally accepted accounting principles (U.S. GAAP). Condition During the course of the financial statement audit, numerous audit adjustments were necessary to ensure the financial statements are fairly presented in accordance with generally accepted accounting principles. Cause Internally prepared financial statements do not conform with generally accepted accounting principles. In certain instances, information necessary to migrate the Organization?s financial statements to U.S. GAAP is not being retained by staff on an ongoing basis. Effect The Organization?s internally prepared financial statements did not conform with U.S. GAAP. Material adjustments were required as part of the audit process. Recommendation We recommend management develop and implement a plan to migrate the Organization?s internal financial statements to U.S. GAAP.