Audits of Small Governments. Unraveling the Mystery of Auditing. May 7, 2012. Presented by: Debbie Goode, CPA Partner Carr, Riggs & Ingram, LLC, CPA’s and Advisors 215 Baytree Drive Melbourne FL 32940 321-255-0088. Planning Phase. “Exceeding Expectations”. Client Acceptance
Unraveling the Mystery of Auditing
May 7, 2012
Debbie Goode, CPA
Carr, Riggs & Ingram, LLC, CPA’s and Advisors
215 Baytree Drive
Melbourne FL 32940
Review prior Auditor workpapers
Planning meeting with client
Read all relevant documents, including minutes
Assess internal controls and walkthroughs
Assess risk, including fraud risk
Develop audit program
Audit team planning meeting
Governmental activities, business-type activities by major fund, aggregate discretely presented component units, all aggregately remaining fund info
Low risk/high risk by area
Send auditors information in advance
Internal controls documented
Walk-throughs before year end
Confirms out before audit fieldwork
Audit fieldwork – auditors in field
Exit conference with partner involved
Go over financial statement draft/reports/comments
Signed rep letters
Partner presents to Council
Internal control and compliance
Single Audit internal control and compliance*
Auditor General of Florida requires management letter
Level of testing up to auditor.
Travel and entertainment.
Benchmarks against similar size entities – population or revenues.
Looks at five year trends.
Favorable, unfavorable, inconclusive.
If unfavorable > 60%, auditor must report.
Can pull out entities not truly comparable.
Significant material deficiency
Remainder - Management Letter comments
If have federal single audit, required.
Must be filed earlier than 30 days after receipt of auditor’s reports or nine months after fiscal year end.
Schedule of Expenditures of Federal Awards and State Financial Assistance
Internal control and compliance over Federal awards and/or State financial assistance.
Schedule of Findings and Questioned Costs
Summary Schedule of prior year audit findings.
Corrective Action Plan
When do you need one?
$500,000 of expenditures during year
How to identify major programs:
Must calculate materiality for all major programs.
Must document controls in place and test they are functioning.
Testing based on CFDA and CSFA
(see Compliance Supplement Matrix –
Test for compliance to grant agreement and compliance supplement.
Tuesday May 8, 2012
10:00 a.m. - 11:40 a.m. GFOA CAFR Award Program – Linda Dufresne and Sarah Koser
10:00 a.m. - 11:40 a.m. How to Invest With Fewer Dollars? – Jeff Larson, Linda Senne and Jeffrey Yates
10:00 a.m. - 11:40 a.m. Strategies to Address Aging Infrastructure – Celine Hyer
10:00 a.m. - 11:40 a.m. Making Technology Work for You! – Steve Murray and Darrel Thomas
10:00 a.m. - 11:40 a.m. Debt Affordability & Policies – Mickey Miller
2:00 p.m. - 2:50 p.m. Gimmie A Budget Light Please! – Brenda Raver
2:00 p.m. - 2:50 p.m. Ethics Review – Peggy McGarrity
2:00 p.m. - 2:50 p.m. Career Development: Building the Next Finance Director – Mark Fostier, Binh Nguyen, Diane Reichard and Jamie Roberson
2:00 p.m. - 2:50 p.m. Pension Risk Management and Asset Allocation – Kevin SigRist
3:10 p.m. – 4:50 p.m. Fraud, Internal Controls and Segregation of Duties for Small Governments – Angela Balent and C. Michelle Blackstock
3:10 p.m. – 4:50 p.m. Preserving Your Reserves – Jason Brown
3:10 p.m. – 4:50 p.m. Yikes! You’ve Been Hacked! – Princessa Brown
3:10 p.m. – 4:50 p.m. Review of the Dodd-Frank Act – Jim Reilly and Ravi Subbaraya