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The engagement letter documents and confirms the auditor's acceptance of the appointment, the objective and scope of the audit, the extent of the auditor's responsibilities to the client and the form of any reports.
North Carolina General Statute 159-34 requires each unit of local government and public authority to have its accounts audited each fiscal year and to submit a copy of the audit report to the Secretary of the Local Government Commission (LGC).
A local government is required to receive an audit of its financial statements if it: receives over $2 million in annual revenues, or. spends more than $750,000 in federal financial assistance, or.
GAO has been auditing the federal government's consolidated financial statements since FY 1997 (as well as various other federal financial statements).
Steps for conducting a financial audit Understand your goals. ... Decide what to include in your audit. ... Gather and organise your materials. ... Begin data analysis. ... Consider financial security. ... Examine tax reporting status. ... Compile a report.
Before accepting an engagement to audit a new client, a CPA is required to obtain: an assessment of fraud risk factors likely to cause material misstatements.
Discussion of Single Audit in North Carolina When specified by the Secretary of the Local Government Commission (LGC), the audit must evaluate the performance of a unit of local government or public authority with regard to compliance with all applicable federal and State agency regulations.
(b) The Local Government Commission has authority to issue rules and regulations for the purpose of improving the quality of auditing and the quality and comparability of reporting pursuant to this section or any similar section of the General Statutes.