© D.L. Crumbley
The ________ in 2002, improperly recorded some expenses, kept “inappropriate balances” in some accounts, and failed to verify how much money it was collecting in transaction fees.
While this government agency’s overall internal controls were “effective,” their financial reports are not presented in accordance with applicable federal accounting requirements.
This agency did not properly record capital leases for computer hardware and did not properly account for its software licensing fees and other in-house expenses. They need to do a better job of tracking transaction fees.
Government Quiz 101
Source: Deborah Soloman, “SEC’s Own Accounting Requires Tightening, Internal Audit Says,” Wall Street J., July 3, 2003, A-2.