1 / 8

Governmental Audits

Governmental Audits. AICPA early work GAO and Comptroller General Need for extended audit work Government Audit Standards Yellow Book + Revisions Single Audit Act of 1984 Circular A-128 & 133 (Rev 1997) AICPA SOPs Single Audit Act Amendment of 1996. Governmental & NPO Auditing.

ostinmannual
Télécharger la présentation

Governmental Audits

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Governmental Audits • AICPA early work • GAO and Comptroller General • Need for extended audit work • Government Audit Standards • Yellow Book + Revisions • Single Audit Act of 1984 • Circular A-128 & 133 (Rev 1997) • AICPA SOPs • Single Audit Act Amendment of 1996

  2. Governmental & NPO Auditing • State, Local, and Federal Government • General Accounting Office and Comptroller General of U. S. • AICPA – “Audits of State and Local Governments” • Legislative Bodies • Non-government NPOs • Internal Revenue Service • Auditing Standards Board-AICPA • GAO and Comptroller General of U.S. (1984)

  3. GAGAS Audits Different Types of Audits • Financial • Fair presentation in conformance with GAAP • Attestation Engagements • May be financial or non-financial • Assertion about a matter and reporting thereon • Performance Audits • Systematic examination that assesses performance of management and organizations toward meeting objectives; Aims are to improve programs (Effectiveness and Efficiency) • Service Efforts and Accomplishments Trend

  4. Governmental Audits-Reporting Standards • Procedure paragraph and “accepted in the United States of America.” (p. 391) • Opinion on Compliance and Internal Control System • Opinion on Federal Financial Assistance Programs • In Relation to Opinion on the Schedule of Federal Awards • Report to describe instances of fraud, etc.

  5. Single Audit Act & Amendments • (1984) One single audit that assured that federal and state fund expenditures were in accordance with law and grant agreements • Originally applied only to S & L Governments with $25,000 or more Federal Financial Assistance • Circular A-133 extended to NG NFP organizations • Cognizant ($50 Million)and Oversight Agencies

  6. Single Audit Act(1996 Amendment) • Increased Threshold Amount to $300,000 ($500,000 in 2004) • Included hospitals as coverage under the act • In 1997, AICPA issued SOP 98-3 • Auditing of S & L Governments and Nonprofit Organizations Receiving Federal Awards

  7. Auditing FFA Awards • Major programs audited according to 50% or 25% rule risk-based approach • Categorize programs as • Type A – Larger programs • Type B - Smaller programs • Type A are major programs unless low-risk (audited within past 2 years with no major audit findings) • Type B are major programs only if high-risk • Refer to example on page 395

  8. Non-government NPO Audits • Not publicly held so not required to have annual audits of financial statements • However, most medium to large organizations will go through independent audits as a matter for their own protection • Must apply for tax exemption through the Internal Revenue Service with Form 1023 • May have unrelated business income on which must pay taxes • Annual Form 990 filed with IRS (See pages 400-401) Includes UBIT if applicable • Last three year’s copies of 990 must be provided upon request by interested parties

More Related