Finding Text
2022-001: Account reconciliation and financial review. Condition: Significant audit adjustment was necessary to be recorded. Criteria: Internal controls and appropriate policies and procedures should be in place to review, detect and/or correct material misstatements to the financial statements. Cause: Adequate year-end financial review closing process to identify material misstatements in the financial statements were not established or implemented. Effect: Financial statement amounts could be materially misstated. Recommendation: Clovernook Housing Network Corporation should establish a policy to have a key board member with appropriate knowledge of generally accepted accounting principles review account balances and financial statements as part of the year-end closing.