Start to finish guidance on performing OMB Circular A-133 audits.  Includes guidance on how to efficiently integrate a compliance audit into the financial statement audit using the risk assessment standards.  Also includes assessing internal control findings using the guidance in SAS No. 112 and the results of the National Statistical Sample of Single Audits conducted under the auspices of the PCIE.

The last three years have seen quite a few changes to professional standards, resulting in significant changes to auditing standards.   These changes and others have been incorporated into the 2007 Yellow Book issued in the fall of 2007. In addition new report forms have been issued for the reports on internal control over financial reporting (GAS) and internal control over compliance (A-133).  The gateway to efficiency is in integrating the two audits, judiciously using practice aids and performing and documenting the “right” level of work.   Now more that ever, it is important that your Yellow Book/A-133 audits will pass the test, if reviewed. The PCIE National Statistical Sample of Audits has confirmed some thing that peer reviewers, ethics division personnel and the GAO have been saying for years:  firms that perform fewer single and smaller audits had more deficiencies in their work than those that performed more and larger audits.  Approximately 51.4% of the audits sampled were either not acceptable or had significant deficiencies. 

Designed For
Audit practitioners working on not-for-profit and/or public sector clients who need audits performed in accordance with the Yellow Book and OMB Circular A-133.  Also accountants in not-for-profit or government organizations that need a compliance audit.  Although this course does not specifically address HUD issues, there are many similarities between HUD engagements and ones conducted under OMB Circular A-133.

Objective
Participants will be able to:

• Plan, calculate sample size, test transactions, conclude and report in accordance with Yellow Book requirements and the Circular.

• Integrate the financial statement audit with the compliance audit for efficiency

• Properly document work performed during the audit.

• Identify the appropriate findings to report

• Identify the appropriate compliance opinion to use

• Write appropriately worded findings for the Schedule of Findings and Questioned Costs and the Data Collection Form.

• Draft applicable reports using the new forms

Participants will be engaged in a number of hands on step by step exercises designed to lead them through the planning and executing of a financial statement/ A-133 audit.  Emphasis will be given to “frequently missed” areas as identified by the PCIE report.  At the conclusion of this session, participants should feel more comfortable with their level of documentation skills and more confident that their work will stand up to peer review or review by governmental agencies.

Presentation Method:  Combination of lecture and hands-on application of principles.

Level of Knowledge:  Intermediate

Prerequisites: Assumed knowledge of not-for-profit and governmental accounting and reporting, Yellow Book and OMB Circular A-133.

Recommended CPE Credit:  8 hours

Field of Study: Auditing

Advance Preparation: None

Availability Date:  05/15/2008

Author(s): Margaret Thomas, CPA, MHA

Qualifies for 24 hour Yellow Book requirement.  Determination as to the qualification of certain courses for the Yellow Book 24 hour requirement should be made on an auditor specific basis depending on that auditor’s Yellow Book clients.  Note that the determination of course qualification is a matter of an auditor’s professional judgment in consultation with appropriate individuals in the audit firm.

It is recommended that this course not be scheduled in conjunction with “Frequently Missed Issues for OMB Circular A-133 Audits.”