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Based on each of the following scenarios below, draft an effective finding for the Management...

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Accounting

Based on each of the following scenarios below, draft an effective finding for the Management Letter. Five Components of an effective finding:

  1. Rate the significance of the deficiency/issue, considering any compensating controls/factors:
    1. Financial statement audit ratings: control deficiency, significant deficiency, or material weakness
    2. Operational audit ratings: low, medium, or high risk based on stakeholder/user response.
    3. Compliance audit ratings: in compliance or out of compliance.
  2. Explain what the issue/deficiency is
  3. Explain why the issue is a problem answer the So what/why should I care? question
  4. Make recommendations
  1. Explain how your recommendations will benefit them answer the How will this help me/why is it worth my time to fix? question.

Write one paragraph.

scenario:

During an operational audit of a University department, it was discovered that four new vehicles had been purchased in January, but had not yet been insured by the time the audit occurred in April. The vehicles had been driven approximately 3,000 miles during that time.

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