Finding Text
2022-003 Knowledge of Generally Accepted Accounting Principles to Prepare Financial Statements Criteria: Management is tasked with assigning an individual with the experience and/or knowledge to review the financial statements and ensure compliance with generally accepted accounting principles. Condition: WAID's management does not possess the appropriate level of accounting knowledge to ensure that the financial statements comply with generally accepted accounting principles. Effect: Financial statements may no be in compliance with generally accepted accounting principles. Cause: Due to the relatively small size of WAID they are unable to support a staff member with the appropriate level of accounting knowledge to ensure the financial statements conform to generally accepted accounting principles. Identification of a repeat finding: This is a repeat finding from the June 30, 2021 audit. Recommendation: WAID management should review the financial statements comparing them to a list of disclosure requirements in accordance with generally accepted accounting principles to ensure compliance. Management's Response: WAID agrees with this finding and will adhere to