Audits of State and Local Government

Author: Eric S. Berman, Kurt Schlicker

Financial Audits of State and Local Governments utilize many of the same processes and procedures as assurance engagements of other organizations with a few major exceptions including (but not limited to) multiple opinion units, the prevalence of group audits and the importance of compliance with laws, regulations, contracts and grant award provisions. But, many governments are required to have engagements in accordance with Government Auditing Standards and may be required to have engagements requiring ‘single audits’ in accordance with the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Hear the entirety of the audit cycle for both the financial audit and single audit from two industry experts, based on CCH’s Knowledge-Based Audits™ of State and Local Governments with Single Audits.

Publication Date: April 2020

Topics Covered

• Financial Audits of States and Local Governments
  • Determining the Reporting Entity
  • GAAS Provisions Specific to Governments
  • GAGAS
  • Opinion Units versus Major Funds
  • Group Audits and Governments
  • Applying the KBA Methodology to Government Audits
  • Preliminary Engagement Activities and Audit Planning
  • Obtaining an Understanding of the Government and Its Environment
  • Assessing the Risk of Material Misstatement
  • Designing Audit Procedures in Response to Assessed Risks
  • Extent of Audit Procedures and Sampling
  • Using Analytical Procedures in Substantive Tests
  • Audit Considerations at the Account Balance, Transaction Class, and Disclosure Level for Governments
  • Performing General Audit Procedures
  • Concluding the Audit
  • Auditor's Reports
• Single Audits
  • What are Single Audits in accordance with Title 2, Code of Federal Regulations, Part 200 (Uniform Guidance)?
  • Applying the KBA Methodology to a Compliance Audit such as the Single Audit
  • Planning the Single Audit
  • Internal Controls
  • Compliance Testing
  • Concluding and Reporting

Learning Objectives

• Differentiate between financial audits for states and local governments and other organizations
• Identify the provisions of GAAS specific to governments
• Identify the basics of Government Auditing Standards (GAGAS)
• Recognize and realize why multiple opinion units occur in many government audits
• Recognize how to utilize the KBA Methodology in a governmental audit
• Identify the basics of Single Audits in accordance with Title 2, Code of Federal Regulations, Part 200
• Recognize and apply the KBA Methodology to a single audit
• Identify the importance, tools and techniques of compliance auditing
• Identify reporting for financial audits of governments and single audits
• Describe engagements where Single Audit Requirements are applicable
• Identify examples of a leverage ratio
• Describe parts of Uniform Guidance including the general provisions
• Identify the steps with respect to major program determination
• Identify responsibilities of an auditor with respect to compliance testing

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Auditing (Governmental) (8 hours)

Program Prerequisites
None

Advance Preparation
None