Management Report: IRS Needs to Improve Financial Reporting and Information System Controls [open pdf - 415KB]
From the Document: "On November 10, 2021, we issued our auditor's report on the results of our audit of the fiscal years 2021 and 2020 financial statements of the Internal Revenue Service (IRS). As part of this audit, we assessed IRS's key financial reporting controls, including information system controls. As we reported in connection with our audit of IRS's fiscal years 2021 and 2020 financial statements, although certain internal controls could be improved, IRS maintained, in all material respects, effective internal control over financial reporting as of September 30, 2021. Those controls provided reasonable assurance that misstatements material to IRS's financial statements would be prevented, or detected and corrected, on a timely basis. However, our fiscal year 2021 audit continued to identify two significant deficiencies in internal control over financial reporting concerning IRS's unpaid assessments and financial reporting systems. We also identified other deficiencies in IRS's internal control over financial reporting that we do not consider to be material weaknesses or significant deficiencies. Nonetheless, these deficiencies warrant IRS management's attention. This report presents the new control deficiencies we identified during our fiscal year 2021 testing of IRS's internal control over financial reporting. This report also includes the results of our follow-up on the status of IRS's corrective actions to address recommendations from our prior years' reports related to internal control over financial reporting that remained open as of September 30, 2020."
Government Accountability Office: https://www.gao.gov/