Finding Text
Condition: During the course of the audit, we noted that the bank accounts are not reconciled at year-end to ensure proper cutoff and reporting of cash balances at December 31. Criteria: Good internal controls include the reconciliation of bank accounts by the Organization to ensure cash balances are properly maintained in the ledger and reported. Effect: The lack of adequate bank reconciliations increases the risk that transactions occur and not be properly recorded in the proper accounting period, therefore increasing the risk of material misstatements to the financial statements. Recommendations: The Organization should ensure bank reconciliations are performed in alignment with the financial reporting period