Finding Text
2022-001 Audit adjustments Condition: During the audit process, material audit adjustments were identified. The adjustments pertained to recording the current year accounts receivable and payable. This finding was reported in the previous year as number 2021-001. Effect: A control deficiency exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions to prevent or detect misstatements on a timely basis. This could affect the Organization?s ability to initiate, record, process, and report financial data consistent with the assertion of management in the financial statements. Cause: The management agent did not make all necessary adjustments to the financial statements prior to the audit process. Criteria: The Organization should have procedures in place and these procedures must be followed to ensure all necessary adjustments are made to the financial statements. Recommendation: We recommend that the Organization verifies all necessary adjustments are made to the financial statements prior to the audit process. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and the auditor?s recommendations will be adopted.