What are common audit findings?

Common audit findings include errors, compliance issues, and control weaknesses that auditors regularly identify. In IRS tax audits, common findings are underreported income where W-2 or 1099 income does not match return, overstated business expenses without receipts, personal expenses claimed as business, lack of mileage logs for vehicle deductions, inadequate documentation for charitable contributions, incorrect filing status or dependents, and unreported foreign income or cryptocurrency transactions. In financial statement audits, common findings include revenue recognition errors, misclassification of expenses, inadequate account reconciliations, lack of supporting documentation for journal entries, and failure to follow GAAP. In internal operational audits, common findings are lack of segregation of duties where one person controls both spending and recording, missing approvals for purchases, outdated policies, weak password controls, inventory discrepancies, and non-compliance with safety regulations. In compliance audits, findings often include missing training records, expired licenses, and incomplete reporting. Auditors typically categorize findings by severity and include criteria, condition, cause, effect, and recommendation, with most findings relating to missing documentation, weak controls, and errors from lack of training rather than intentional fraud.