Finding Text
Finding 2022-004: Audit Documents Preparation and Delivery Assistance Listing Number and Title: 59.075 Shuttered Venue Operators Grant Program Federal Agency: Small Business Administration Federal Award Number: SBAHQ21SV004136 Grant Period: 7/12/2021 through 6/30/2022 Criteria Organizations subject to audit should have complete and accurate documentation readily available to support the amounts and disclosures in the financial statements (generally accepted). Conditions Significant amounts of documentation to support the amounts and disclosures in the financial statements were not readily available for review. Cause There was inadequate organization of needed documents and information prior to the start of the audit. Effect The audit stretched on for many weeks increasing audit costs and delaying the issuance of final audit reports. Context The accounting for and disclosures in the Organization?s financial statements are very complex, and does require significant preparatory work to be completed ahead of the annual audit. Recommendation Much greater effort should be put into preparing for the annual audit so that adequate supporting documentation is readily available at the beginning of and throughout the audit process.