AICPA Governmental Audit Quality Center Conference Call January 28, 2009 Preparing for Your Single Audit: An Auditee Perspective. Presented by : Joseph E. Seibert Partner KPMG [email protected] (717) 260-4608 Sean M. Walker,
Presented by: Joseph E. Seibert
Sean M. Walker,
Assistant Director of Assurance Services
Clifton Gunderson LLP
Sean [email protected] (414) 721-7521
After participants complete this call, they will understand:
Why this call is being held
The basics of OMB Circular A-133, when it is applicable, and what it requires of the auditor
What compliance requirements are, how auditees can identify them, and what auditors are required to test
Auditee responsibilities for internal control over compliance, the various elements of COSO, and auditor responsibilities for understanding and testing auditee internal control
Various rules and regulations that must be complied with to achieve compliance
The various reporting requirements for both auditors and auditees
Tips for auditees to get ready for their audits and steps that can be taken to help ensure a quality audit is obtained
Circular A-133 Basics
After this is determined, auditor can begin the process of selection of major programs.
Step 1 Step 2 Step 3 Step 4
Identify "Type A" programs
Identify low-risk "Type A" programs
Identify high-risk "Type B" programs
Determine major programs to audit
Programs not deemed Type A are Type B
All Type A's that are not Low Risk are deemed High Risk
Compliance Requirements from Management, and How it Affects You
Internal Control Over Compliance from Management, and How it Affects You
You should be able to answer the following questions when asked:
This question flushes out the control activities.
This question flushes out the risk assessment component.
This question flushes out the information and communication component.
This question flushes out the monitoring component.
Auditors cannot be part of the auditee’s internal controls!
Achieving Compliance from Management, and How it Affects You
Which Circular Do I Follow?
Although there are six grant circulars, you are only covered by three of them, depending on type of entity:
States, local governments, and Indian Tribes follow:
Educational Institutions (even if part of a State or local government) follow:
Non-Profit Organizations follow:
(Auditor develops with assistance from client)
Reporting Requirements from Management, and How it Affects You
Tips and Best Practices from Management, and How it Affects You
5 Steps You Can Take to Help Ensure Quality