The Auditor-General reported the following: a) "CIPRO's accounting policy of recognising revenue from annual returns on a cash basis was not consistent with the substance of the transactions and the accrual principle. b) CIPRO only recognised revenue for companies that had submitted their annual returns during the financial year and not for all companies that were liable to lodge a return. c) Consequently, revenue, accounts receivable, the accumulated surplus and the corresponding figures were understated.