Field notes
Reading a Findings Memo Without Panic
A findings memo can look alarming if every exception is read as a failure. In practice, most service-company ledgers contain a mix of material breaks and housekeeping notes.
Start with the severity column. High-severity items usually affect cash integrity, revenue cut-off, or liabilities that change decision-making. Medium items distort management reports but may not move statutory totals. Low items are naming, documentation, or process friction.
Next, note the sampling language. An audit of selected months does not claim every posting was tested. Ask which populations were out of scope so you do not over-promise completeness to a bank or buyer.
Finally, treat the remediation list as a calendar, not a scolding. Sequence bank reconciliation fixes before cosmetic chart-of-accounts renames. Your bookkeeper will thank you, and the next review cycle will be shorter.