> For the complete documentation index, see [llms.txt](https://engyon.gitbook.io/engyon/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://engyon.gitbook.io/engyon/en/reference/findings.md).
# Findings
On this screen, users can create and review findings, make them visible to client users, and record quantitative adjustments.
### **Related information**
If you have little experience with Engyon, we recommend first reading the information on the following pages:
[Training module 9: Findings](/engyon/en/training/training-english/module-9-findings.md)
### Types of findings
Choose from the following types of findings:
1. **Internal control deficiencies**: these can be both significant and non-significant deficiencies in internal control (see Standard 265.6).
2. **Misstatement**: a (corrected or uncorrected) misstatement as defined in Standards 200.13i and 450.4
For a Misstatement, the auditor then chooses between:
1. **Qualitative** misstatement (such as an incorrect explanation or accounting policy in financial statements), recognizable in the findings screen by the icon (document) :file-lines:at Qualitative misstatement.
2. **Quantitative** misstatement (a numerical error in the financial statements), recognizable in the findings screen by the icon (calculator) :calculator:at Quantitative misstatement.
In the Create finding screen, enter the following:
* **Title** (required), **description** (optional), and **recommendation** (optional) of the finding;
* The **Severity** (required) of the finding: choose from high, medium, and low;
* The applicable **audit units**: the audit unit or line items to which the finding applies (optional);
* Assigned users: the users involved in the finding (optional);
* **Show to client users**: when this is turned on, the client will see the finding in the findings screen when it is out of draft status when they log in to Engyon (see the video at the bottom of [training module 11](/engyon/en/training/training-english/module-11-client-access.md#findings) for a demo of this).
For a quantitative misstatement, the following additional information must be entered:
* **Audit** (required): only when there are coupled audits: the audit to which the misstatement relates;
* The **nature** of the misstatement: Factual, judgmental, or projected;
* **Type** of misstatement: Normal or classification;
* Whether the misstatement is an indication of a **Fraud risk** (Standards 240.36 and 450.11 and A22).
{% hint style="info" %}
To be able to create numerical adjustments for a finding (quantitative misstatement) later, we recommend only creating findings for audit units and financial statement line items for which figures have been ingested. This may mean that you have to navigate (using the group icon (:sitemap:)) to an audit unit for which trial balances have been ingested.
{% endhint %}
### Visibility for client users
When creating findings, you can indicate whether the finding is visible to client users (when it is no longer in draft status) by turning on Show to client users. In the findings screen, this is visible by the eye icon (:eye:) next to the title of the finding. By opening the finding and clicking on the eye icon at the top, you can adjust this setting afterwards (making the finding visible or invisible to client users). When a finding is visible to client users, an open lock icon (:lock-open:) appears behind the eye icon. By clicking on this, you specify for which client users the finding should be shown. If no client users are selected here, the finding is visible to all client users.
### Comments
To communicate with the client about findings, both the client and the auditor can post comments on findings that are in in progress status and have been shown to the client. To do this, open the finding and go to the Comments screen in the top right. Here you can post comments and see comments posted by the client.
### Adjustments
The auditor can add adjustments (proposed adjustment entries) to quantitative misstatements. The finding must have the status draft or in progress for this. To do this, open the finding, go to the Adjustments screen in the top right, and click on + adjustment to add an adjustment. Fill in the following here:
**General ledger account**: select the general ledger account for the debit entry. All general ledger accounts of the ingested trial balances on the audit unit for which the finding was created are shown here, plus accounts that you manually added afterwards in Settings → General ledger accounts (with an **Amount**). General ledger accounts with an asterisk (:asterisk:) are recommendations Engyon makes based on the line item for which the finding was created. See [Trial balance ingestion](/engyon/en/how-to-guides/importing-figures/ingesting-trial-balance.md#manually-adding-a-general-ledger-account).
{% hint style="info" %}
If you see no or incorrect general ledger accounts here (e.g., only elimination accounts), you probably created the finding at the group level or at the level of the wrong audit unit. Then create a new finding at the correct level in the group structure.
{% endhint %}
{% hint style="info" %}
If figures have only been ingested from a consolidation statement or financial statements (so not from a trial balance), you can only create entries at the line item level.
{% endhint %}
**Date**: you can choose the date of the end of the reporting period of the ingested figures for which you want to make the adjustment. For example, if you have ingested figures for both 30/9 and 31/12, you can choose from these.
{% hint style="info" %}
Do you want to create a numerical adjustment proposal at the **group level** (elimination), for example, from `basic reconciliation and reporting`? Then figures must be at that level: ingested eliminations. Without those figures, you cannot choose a **Date** and cannot enter the adjustment.
Have you already ingested a trial balance? Add eliminations via the source request `Consolidation statement` and map **only** the elimination column, so the other figures and the scope remain. See [Consolidation statement ingestion](/engyon/en/how-to-guides/importing-figures/ingesting-consolidation-sheet.md) and [Elimination administration ingestion](/engyon/en/how-to-guides/importing-figures/ingesting-elimination-records.md).
{% endhint %}
**Debit / Credit**: enter the amount of the entry line under debit or credit.
Then create another line by clicking on + adjustment to create the line for the offsetting entry/entries.
### Evaluating findings
In work step `Evaluation of the audit opinion including evaluation of misstatements` in the closing section, the auditor must evaluate the influence of uncorrected misstatements on the financial statements.
An overview of the quantitative misstatements can be found in the adjustment overview. To do this, go to the Findings screen. Click on corrections evaluation in the top right (calculator icon :calculator:) to view all adjustments. This can be done at the group or audit unit level; to do this, navigate the audit to the correct level using the group icon (:sitemap:).
In the adjustment overview, you see all quantitative misstatements divided into accepted (resolved) and rejected adjustments, categorized vertically by nature (factual, judgmental, or projected) and horizontally by financial statement component (fixed assets, current assets, equity, revenue, etc.). Overall materiality and performance materiality are shown in the top left. When the total effect of rejected adjustments per component is greater than the overall materiality, the total count is displayed in red so it is clear that the financial statements may contain a material misstatement.
{% hint style="info" %}
In the corrections evaluation, no [specific materiality](/engyon/en/how-to-guides/materiality-and-scope/recording-materiality.md#specific-materiality) is shown, if applicable, because it may relate to one or more financial statement line items that fall under (part of) one or more financial statement components. You must therefore additionally evaluate the line items to which specific materiality applies.
{% endhint %}
Qualitative misstatements must be evaluated individually by giving them a conclusion (resolved, Material (include in report), or not material).
Quantitative misstatements with the conclusion *"resolved"* are displayed as *"accepted"* in the corrections evaluation screen. All other findings automatically fall into the *"rejected"* category.
## Related manuals
* [Creating a finding](/engyon/en/how-to-guides/checks-and-findings/create-a-finding.md)