Notable changes between FY’22 and FY’21 trends in material weaknesses
Material weaknesses related to lack of accounting resources, segregation of duties, and control, control not operating effectively, material/numerous audit or year-end adjustments issues all showed significant increases in 2022, while the lack of policy and/or procedure, systems/technology/ITGC, and risk assessments showed decrease. Lack of accounting resources and expertise, segregation of duties issue, inadequate control design/lack of control, and inadequate/lack of formal policies and procedures are consistently the top four material weaknesses over the last three years.
