Answer: Management needs to improve its ability to identify when adjusting journal entries are necessary for accurate financial reporting.
Trend: There is a recurring issue with timely recognition of adjustments, which could lead to non-compliance with U.S. GAAP.
List: Recommend training for management on U.S. GAAP requirements and regular reviews of financial statements to ensure adjustments are made when needed.
Finding Text
Consideration of Management’s Ability to Recognize the Need for Adjusting Journal Entries for its
Financial Statements to be Reported in accordance with U.S. GAAP