Finding Text
Condition:
During the audit of several key transaction cycles, it was noted that management did not have adequate
controls in place over financial reporting, specifically the journal entry process, to allow for timely and
accurate financial reporting, resulting in an audit adjustment being posted by management.
Context:
As a result of audit procedures performed, several accounts had to be adjusted to recognize the appropriate
balances at year-end. These accounts included cash with negative balances, accounts receivable with
negative balances, accounts payable with positive balances. Also, the accounts receivable allowance for
doubtful accounts balance was greater than the gross accounts receivable and the unearned revenue
account had a positive balance. Total adjustment aggregated to $2,491,439.