![]() Local auditees should use the information in the LAGAG, in conjunction with the guidance of the professionals most familiar with the particular facts and circumstances regarding their agency, in the performance of their operations.įor questions and comments about the LAGAG, please contact LLA at (225) 339-3800.16 Segregation of Duties: How to Overcome In addition, although the LAGAG is intended to assist local auditees, it does not include all the legal and accounting information an agency needs to perform its operations nor is it a substitute for professional, legal or accounting advice or professional or personal judgment. ![]() CPAs must reach their own conclusions through research of all applicable auditing and accounting standards, in addition to the LAGAG, in the performance of their local auditee engagements. The LAGAG is jointly produced by the Louisiana Legislative Auditor (LLA) and the Society of Louisiana Certified Public Accountants.Īlthough the LAGAG is intended to assist CPAs in performing their audits and other engagements for local auditees, it does not include a detailed analysis of the professional auditing and accounting standards a CPA must consider during his or her audit, review/attestation or compilation engagements nor is it a substitute for professional judgment. (5) (a) (i) to set forth the standards by which the engagements of local governments and quasi-public organizations (local auditees) are to be performed. The Louisiana Governmental Audit Guide (LAGAG) is authorized by Louisiana Revised Statute 24:513 A. A CPA firm is not required to be independent to perform a compilation engagement. The Louisiana Legislative Auditor (LLA) will not approve an audit or review/attestation engagement of a CPA firm if LLA has valid reason to believe that the CPA firm is not independent regarding the local auditee. ![]() The CPA firm may not make decisions that should be made by the local auditee’s management, and still remain independent to perform the audit. The CPA firm may propose adjustments to a local auditee’s financial statements, but may not post the adjustments into the local auditee’s books and records without the approval of the local auditee's management. The CPA firm may make recommendations to the local auditee, but may not implement the recommendations for the local auditee. The CPA firm that performs a local auditee’s audit will not be able to perform certain non-audit services for the local auditee. Going into an engagement with either attitude impairs the independence of the CPA firm. It also means that the CPA cannot enter into the engagement with a pre-conceived notion that the local auditee is doing everything wrong. If the threat is identified after the engagement has commenced, the CPA firm must withdraw from the engagement.Ī CPA firm cannot enter into an engagement with a pre-conceived notion that the local auditee is doing everything right or that they will issue a clean or unmodified opinion and write no findings no matter what they discover. If the threats to a firm’s independence cannot be overcome by appropriate safeguards, the CPA firm cannot accept the engagement. ![]() Examples of safeguards may include removing a staff member with an independence threat from the audit engagement, or having another CPA firm review the audit work performed. If the CPA firm determines that threats exist, the firm must then determine whether these threats can be overcome by putting appropriate safeguards in place to reduce the threats to a level that would allow them to maintain their independence.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |