The following conditions of material weaknesses were reported in a prior year independent auditors' report on internal control of the U.S. Department of Transportation Highway Trust Fund (HTF):

1. Weaknesses with respect to journal entry preparation:

a. Lack of indication of preparer

b. Lack of supporting documentation

c. Lack of proper review and approval 

2. Weaknesses with respect to the consolidated financial statement preparation and analysis process:

a. Inadequate analysis of abnormal balances

b. Inadequate analysis of account relationships

c. Inadequate controls over journal entry processing

d. Lack of oversight related to allocation transfers 

Required

a. What is the possible negative effect of these material weaknesses?

b. If you were the reporting auditor, what would you recommend be done?