Accounting Internal Audit Resolution
Date: [Month Day, Year]
Audit Period: Fiscal Year Ended [Month Day, Year]
Prepared by: Internal Audit Department
Following the comprehensive internal audit conducted for the fiscal year ended [Month Day, Year], and the detailed findings presented in our audit report dated [Month Day, Year], we convened to review and deliberate on the necessary corrective actions. In response to the audit findings, it is hereby resolved as follows:
1. Regarding Revenue and Receivables Discrepancies
It is hereby resolved that a more stringent sales return verification process be implemented immediately to address the identified discrepancies totaling $[Amount] in sales returns. Furthermore, an enhanced follow-up procedure for receivables, particularly those outstanding for more than [00] days, will be instituted to improve cash flow and reduce bad debt exposure. A target recovery of at least [00]% of the outstanding $[Amount] in receivables is set for the next quarter.
2. On the Misclassification of Expenses
It is hereby resolved that the misclassification of $[Amount] in expenses be corrected forthwith. Additional training for the accounting department staff on proper expense categorization and reporting will be conducted within the next 30 days to prevent recurrence. An internal review mechanism will also be established to ensure ongoing compliance and accuracy in expense recording.
3. Regarding Inventory Management Discrepancies
It is hereby resolved that immediate steps be taken to enhance the physical inventory control processes and the inventory recording system. These steps include periodic inventory counts to be conducted quarterly and the adoption of a more sophisticated inventory management software. These actions aim to significantly reduce the $[Amount] inventory discrepancies identified and ensure accurate inventory valuation.
4. On the Understatement of Depreciation Expense for Fixed Assets
It is hereby resolved that the depreciation calculations for the assets acquired mid-year that led to a $[Amount] understatement in depreciation expense be adjusted retroactively. Going forward, the finance team will employ a revised depreciation calculation method to ensure accuracy. This adjustment will ensure that our financial statements accurately reflect the value of our fixed assets and comply with accounting standards.
Implementation and Monitoring
Each resolution will be assigned to a specific team within the finance and accounting department for implementation. Progress will be monitored on a monthly basis by the Internal Audit Department, with a comprehensive review scheduled for the next quarter to assess the effectiveness of these resolutions and to make further recommendations as necessary.
Acknowledgment
We acknowledge the cooperation and dedication of all employees in addressing these audit findings. It is through our collective efforts that we will maintain the integrity and accuracy of our financial reporting and strengthen our internal controls.
Conclusion
These resolutions affirm our commitment to upholding the highest standards of financial management and accountability. We are confident that the implementation of these measures will address the audit findings effectively and enhance our overall financial governance.
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