Finding Text
ondition: The audited financial statements and the accompanying footnote disclosures were prepared by the auditors. Criteria: It is the responsibility of management to prepare the financials and related disclosures to be audited. This criteria is derived from the audit engagement letter and demonstrates the general proficiency over financial reporting. . Cause: Employees at Wisconsin School of Professional Psychology, Inc. do not have experience preparing financial statements and disclosures in accordance with generally accepted accounting principles in the United States. Effect: Without staff knowledgeable about the preparation of financial statements in accordance with generally acceptable accounting principles, there may be material misstatements in the financials or disclosures that would not be prevented or detected in a timely manner. Recommendation: It is not cost effective for the auditee to employ additional personnel solely for financial reporting purposes. Therefore, the School should continue to utilize the financial expertise of their contracted bookkeeping service performed by CPAs. Management Response: The School will continue to use a CPA bookkeeping service.