Randall Inc., an audit client of Jones CPA, for the past five year, is a private company that manufactures heavy machinery and requires GAAP audited financial statements. Jones is wrapping up the audit of Randall Inc. for the year ending December 31, 2019. You as the auditor identified the following issues during your audit:

1. During your testing of Cash you find that nearly all the companys cash receipts are in the form of checks received through the mail, but there is no prelisting of cash receipts before they are recorded in the accounts. Also, the incoming mail is opened by either the cashier or by the employee maintaining the accounts receivable subsidiary ledger, depending on which employee has the time available.
2. During your testing of Cash you find several checks totaling $937 that have been outstanding for more than one year. You concluded that these checks would have never been presented for payments as Randall prepared a check for $937 payable to himself, forged the treasurers signature, and cashed the check. Randall made no entry in the accounts for this disbursement and attempted to conceal the theft by destroying the forged check and omitting the long-outstanding checks from subsequent bank reconciliations.
3. During your testing of Accounts Receivable and Revenue, as part of your procedures, you analytically looked at the Accounts Receivable Aging Report. You noted that there were several aged receivables with no corresponding allowance for doubtful accounts. When you inquired of management they stated We leave them on the books in hopes to collect them, we sometimes do, and sometimes dont so we write them off.
4. During your testing of Accounts Payable and Other Liabilities, as part of your procedures, you tested subsequent payments to ensure proper cutoff. You noted that there were several payments made after year end that were for the year under audit. The total of the payments you found were material to the overall financial statements.

For one of the following issues identified during your audit, write a memo style management letter to those charged with governance communicating the issue identified, the proper way to account for the identified issue, and a recommendation to prevent the issue from happening in the future.