Finding Text
Finding 2022-02 Internal Control Over Financial Reporting Material Weakness in Internal Control Condition Our audit procedures identified material misstatements such that we concluded THE ORGANIZATION was unable to present its accounting records in accordance with generally accepted accounting principles. As a result, we proposed and management recorded journal entries to correct the misstatements that had a material effect on the Organization?s accounting records. Criteria Statement on auditing Standards No. 115 "Communicating Internal Control Related Matters Identified in an Audit" ("SAS 115") focuses on how the auditor communicates matters related to internal controls to the client. One area SAS 115 emphasizes is internal control over financial reporting. Cause Lack of management oversight. Effect Errors and/or fraud can occur and not be detected and corrected on a timely basis. Auditor Recommendation We recommend that procedures and controls are implemented in order to prepare timely and accurate financial information in accordance with generally accepted accounting principles.