audit checklist for letter of credit6
TRANSCRIPT
-
8/12/2019 Audit Checklist for Letter of Credit6
1/84
U nited S ta tes G enera l Accounting Office
P residents Council on I nt egrity a nd E fficiency
G AO/P C IE
Financial
AuditMa nua l
E xposure D ra ft
Volum e 2G AO-01-281G
-
8/12/2019 Audit Checklist for Letter of Credit6
2/84
[This pa ge intent ionally left bla nk.]
-
8/12/2019 Audit Checklist for Letter of Credit6
3/84
C ONTE NTS - P ART I I
-
8/12/2019 Audit Checklist for Letter of Credit6
4/84
[This pa ge intent iona lly left bla nk.]
-
8/12/2019 Audit Checklist for Letter of Credit6
5/84
CONTENTS - PART II
D ecem ber 2000 G AO/P C I E F in a n cia l Au dit Ma n u a l - P a r t II C on t en t s-1
600 PLANNING AND GENERAL (U nder development - a va ilable in
a future updat e)
650
650 A
650 B
U sing t he Work of Oth ers
Exa mple Reports When U sing t he Work of Oth ers
Exa mple Audit P rogram for U sing t he Work of Others
700 INTERNAL CONTROLS
800 COMPLIANCE (U nder development - a va ilable in a fut ure
update)
801 (Reserved)
802 G en er al C om plia n ce C hecklist
803 Ant ideficiency Act
804 Clos ing Appropr ia t ion Account s (Na t iona l De fense Author iza t ion
Act for Fis cal Yea r 1991)
805 B u d get Accou nt in g a n d P r oced ur es Act of 1950
806 C h ief F in a n cia l Officer s Act of 1990
807 F ed er a l M a n a ger s' F in a n cia l I n t eg rit y Act of 1982
808 F ed er a l C red it Refor m Act of 1990
809 P r ov is ion s G ov er n in g C la i ms of t he U n i ted S t a t es G ov er n men t (31U .S.C . 3711-3720E ) (In cluding th e D ebt Collection Im provement
Act of 1996)
810 P rompt P ayment Act
811 S ingle Audit Act of 1984
812 P a y a n d Allow a n ce S y st em for C iv ilia n E m ploy ees a s P r ov id ed
P rima rily in Cha pters 51-59 of Title 31, U nited S ta tes C ode
813 C ivil S er vice R et ir em en t Act of 1930
814 F ed er a l E m ploy ees H ea l t h B e n efit s Act of 1959
815 F ed er a l E m ploy ee's G r ou p L if e I n su ra n ce Act of 1980
816 F ed er a l E m ploy ees ' C om pen sa t ion Act
900 SUBSTANTIVE TESTING
-
8/12/2019 Audit Checklist for Letter of Credit6
6/84
CONTENTS - PART II
D ecem ber 2000 G AO /P C I E F in a n cia l Au dit Ma n u a l - P a r t II C on t en t s-2
1000 REPORTING
1001 Ma n agemen t Represen ta t ion s
1001 A Il lust ra t ive Mana gement Representa t ion Let ter
1002 (Reserved)
1003 F in a n cia l S t a t em en t Au dit C om plet ion C h eck lis t
1004 Check li st for Repor t s P repared Under the CFO Act (Will be
a va ilable for comment J a nua ry 15, 2001)
1005 S ubseq uen t E ven ts Review
1006 Rela ted P a rt ies Review
-
8/12/2019 Audit Checklist for Letter of Credit6
7/84
S E C TION 600
P la nning a nd G enera l
[U nder development; a vaila ble in a future upda te.]
-
8/12/2019 Audit Checklist for Letter of Credit6
8/84
[This pa ge intent iona lly left bla nk.]
-
8/12/2019 Audit Checklist for Letter of Credit6
9/84
S E C TION 700
In t erna l Cont rols
(This section is reserved .)
-
8/12/2019 Audit Checklist for Letter of Credit6
10/84
[This pa ge intent iona lly left bla nk.]
-
8/12/2019 Audit Checklist for Letter of Credit6
11/84
S E C TION 800
Compliance
[Under development; available in a future update.]
-
8/12/2019 Audit Checklist for Letter of Credit6
12/84
[This pa ge intent iona lly left bla nk.]
-
8/12/2019 Audit Checklist for Letter of Credit6
13/84
S E C TION 900
S ubsta nt ive Test ing
(This section is reserved.)
-
8/12/2019 Audit Checklist for Letter of Credit6
14/84
[This pa ge intent iona lly left bla nk.]
-
8/12/2019 Audit Checklist for Letter of Credit6
15/84
S E C TION 1000
Reporting
-
8/12/2019 Audit Checklist for Letter of Credit6
16/84
[This pa ge intent iona lly left bla nk.]
-
8/12/2019 Audit Checklist for Letter of Credit6
17/84
Reporting
1001 - MANAGEMENT REPRESENTATIONS
December 2000 GAO/PCIE F inancia l Audit Manua l - P a r t I I P age 1001-1
.01 This sect ion dea l s w ith the management represent a t ions tha t the auditor i s
required to obta in from current ma na gement a s pa rt of th e a udit , as
described in sections 280 a nd 550. It covers th e four genera l ar eas of
representa tions: representa tions a bout the finan cial sta tements, interna l
cont rol, fina ncial man a gement sy stems substa ntia l compliance wit h th e
requirements of th e Federa l Fina ncia l Man a gement Improvement Act of
1996 (FFMI A), and complia nce w ith la w s an d regulations. In t he AIC P A
st a nda rds, t hese represent a tions a re discussed in sections AU 333 (SAS 85),
AT 400.41 (from Stat ement on Standar ds for A tt estat ion Engagement s
(SS AE) Number 2, a s am ended), and AU 801. OMB a udit guida nce a lso
conta ins guidan ce on ma na gement r epresenta tions lett ers.
.02 Writ t en represent a t ions f rom mana gement ord ina r i ly conf irm ora l
representa tions given t o the aud itor, indicate a nd document t he continuing
appropriateness of those representations, and reduce the possibility of
misundersta nding. Ma na gement represent a tions a re not a substitut e for
a udit procedures. If a represent a tion is contr a dicted by other aud it evidence,
th e audit or should investigat e the circumsta nces a nd consider th e reliability
of th e representa tion. Also, th e a udit or should then consider w heth er it is
a ppropria te to rely on other ma na gement representa tions. Ma na gement's
refusal to furnish w ritt en representa tions is a scope limitat ion sufficient to
preclude an unq ua lified opinion.
.03 The specific representa t ions obtained will depend on the circumsta nces of the
engagement a nd t he na ture a nd ba sis of presenta t ion of the f inancia l
sta tements. These representa tions a pply to a ll the fina ncia l sta tements an d
a ll periods covered by th e audit report. In a ddition to the representa tions
given in th e AIC P A sta nda rds, the a uditor genera lly should consider the
need to obta in representa tions on other ma tt ers based on th e circumsta nces
of the a udited entity. Also, the representa tions given in t he exa mple
representa tion lett er in s ection 1001 A should be deleted if ina pplicable or
customized to the situa tion of the entit y being aud ited.
.04 The mana gement representa t ion le t ter should be obta ined from the highest
level of the a udited entity. The officials w ho sign th e man a gement
representa tion letter should be those who, in the a uditor's view, a re
responsible for and knowledgeable, directly or through others, about the
ma tt ers in the representa tion lett er. These officials should genera lly be th e
-
8/12/2019 Audit Checklist for Letter of Credit6
18/84
Reporting
1001 - Management Representations
December 2000 GAO/PCIE F inancia l Audit Manua l - Pa r t I I Pa ge 1001-2
head of th e entity a nd the CFO, or equivalent. Additional man a gement
representation letters should be obtained from any component units for
w hich separa te reports a re to be issued.
.05 The mana gement representa t ion le t ter should be on the audi ted ent i ty 's
lett erhead. The representa tions should be a s of a da te no earlier tha n th e
da te of th e aud itor's reportth e end of fieldw ork. To ensure th e lett er is
ready in t ime, a dra ft letter generally sh ould be provided to an d discussed
with man a gement early in the a udit a nd updat ed for circumsta nces found
thr oughout the audit . Where ma na gement signs th e lett er after the end of
fieldwork, the letter should sta te tha t th e representa tions are as of th e date
of the a udit report. If ma na gement signs t he lett er before the end of
fieldwork, the audit or genera lly should obta in a sepa ra te lett er to updat e therepresenta tions to th e end of fieldwork. H owever, w here the time difference
is short , th e auditor may upda te the represent a tions ora lly and document th e
updat e in th e workpa pers.
.06 Al though the management represent a t ion let t er genera l ly shou ld be
a ddressed to the Comptroller G eneral (a t G AO) or the agency IG , the a udit
tea m should consider ha ving th e ent ity deliver it directly t o a member of the
tea m to avoid an y delays in receiving the lett er.
.07 Especia lly for l a rge audit ed ent i t ies , management may need to speci fy a
ma teriality t hreshold in the ma na gement represent a tion letter, below w hichitems w ould not be considered exceptions. The a udit or should be sa tisfied
tha t such a ma teria l ity threshold is so far below design mat eria l ity t ha t even
ma ny items below this level would not, in the a ggregat e, approa ch design
ma teria lity. For exa mple, a t hresh old th a t is 5 percent (or less) of design
ma teriality m a y be sufficient ly low . The mat eriality level may be different
for different representa tions a nd w ould not a pply to th ose representa tions
not directly relat ed to a mounts in th e fina ncial sta tements (such as
responsibility for th e sta tements).
REPRESENTATIONSRELATINGTOTHE FINANCIALSTATEMENTS
. 08 Pa ragraph AU 333.06 l is t s 17 management represent a t ions tha t a re
ordina rily included in a G AAS a udit if a pplica ble. These genera lly rela te to
ma na gement a cknowledging its responsibility for the fina ncia l sta tements
a nd its belief tha t t he fina ncial sta tements a re fairly presented in conformity
-
8/12/2019 Audit Checklist for Letter of Credit6
19/84
Reporting
1001 - Management Representations
December 2000 GAO/PCIE F inancia l Audit Manua l - Pa r t I I Pa ge 1001-3
w ith g enera lly a ccepted accountin g principles; completeness of fina ncial
informa tion; recognition, measurement, a nd disclosure; a nd subsequent
event s. Exa mples of a dditional represent a tions th a t ma y be a ppropriat edepending on an entity's business or indust ry a re given in a ppendix B t o AU
333. The au ditor ma y review section AU 333 for items t ha t could be a dded to
th e representa tions, man y of which w ould ha ve to be modified in t he federa l
government environment. (OMB ha s added a representa tion dealing with
intra governmenta l tra nsa ctions an d th eir reconcilia tions for CF O Act
agencies and components.)
.09 Appendix B of AU 333 gives example language for the fol lowing s itua t ions :
Genera l Unaudited interim information accompanies the financial statements.
The impa ct of a new a ccountin g principle is not known .
There is justifica tion for a cha nge in a ccounting principles.
Fina ncia l circumsta nces a re stra ined, with d isclosure of ma na gement 's
intentions a nd t he entity's ability t o cont inue as a going concern.
The possibility exists t ha t th e va lue of specific significa nt long-lived
a ssets or certa in identifiable inta ngibles ma y be impaired.
The w ork of a specialist ha s been used by th e entity.
Cash
Disclosure is required of compensat ing ba lan ces or other a rra ngementsinvolving restr ictions on ca sh ba la nces, line of credit, or simila r
arrangements.
Finan cial instruments
Mana gement intends to and ha s the a bil ity t o hold to maturity debt
securities classified as h eld t o mat urity.
Management considers the decline in value of debt or equity securities to
be tempora ry.
Man a gement ha s determined the fair va lue of significa nt fina ncia l
instruments tha t do not ha ve readily determina ble mar ket values. There ar e financial inst ruments w ith off-bala nce-sheet risk a nd fina ncia l
instrum ents w ith concentr a tions of credit risk.
Receivables
Receiva bles ha ve been recorded in th e financial st a tements.
-
8/12/2019 Audit Checklist for Letter of Credit6
20/84
Reporting
1001 - Management Representations
December 2000 GAO/PCIE F inancia l Audit Manua l - Pa r t I I Pa ge 1001-4
Inventories
E xcess or obsolete invent ories exist.
Deferred charges
Ma terial expenditures ha ve been deferred.
Debt
Sh ort-term d ebt could be refina nced on a long-term ba sis, an d
ma na gement int ends to do so.
Contingencies
Est ima tes a nd disclosures ha ve been ma de of environmenta l remediat ion
liabilities and related loss contingencies. Agreements may exist to repurchase assets previously sold.
P ension a nd postretirement benefits
An a ctua ry m easured pension lia bilit ies and costs.
There is involvement with a multiemployer plan.
P ostretirement benefits ha ve been elimina ted.
Em ployee la yoffs tha t w ould oth erwise lea d to a curta ilment of a benefit
plan a re intended to be tempora ry.
Ma na gement intends t o either cont inue to make or not ma ke frequent
a mendments to its pension or other postretirement benefit plans, w hich
may affect the amortization period of prior service cost, or managementha s expressed a substa ntive commitm ent t o increase benefit obligat ions.
Sales
There ma y be losses from sa les commitm ents.
There ma y be losses from purcha se commitm ents.
Na tu re of the product or indus tr y indica tes th e possibility of undisclosed
sa les terms.
.10 The auditor genera l ly should consider the need for a ddit iona l customizing of
th e exa mple representa tion lett er given in section 1001 A a nd for t hea dditional representa tions in para gra ph 1001.09. Ma ny of th e
represent a tions ma y ha ve to be qua lified, especially in a n initia l aud it or in
lat er audits wh ere significa nt problems remain. For insta nce, w here th e
exa mple represent a tion lett er sta tes tha t t here are no viola tions of law s or
regulations, the entit y ma y need to a dd a t t he end of the sta tement, " except
a s follows:" a nd describe the violat ions.
-
8/12/2019 Audit Checklist for Letter of Credit6
21/84
Reporting
1001 - Management Representations
December 2000 GAO/PCIE F inancia l Audit Manua l - Pa r t I I Pa ge 1001-5
.11 In addi t ion, the audi tor genera l ly should consider whether circumstances
ma y require tha t a dditional descriptive items be included in th e
representation letter, especially as support for conclusions the auditor makesin the audit . This is importa nt w here the corrobora ting informa tion tha t can
be obta ined by procedures other t ha n inq uiry is limited. For exa mple, the
letter should include descriptions of (1) th e reas ons for a udit ed-entit y-
imposed scope limita tions, such a s la ck of a va ilabilit y of certa in records,
(2) th e basis for ma teria l liability estima tes, key a sset va luat ions, or the
probability of conting encies, an d (3) significan t pla ns or inten tions for the
entity. For exam ple, if the ent ity ha s a pension plan outside of the Civil
Service Retirement Syst em or t he Federal E mployees' Retirement Syst em,
a n i tem should sta t e tha t t he ent i ty does not plan to termina te the plan an d
tha t m an agement believes the actuaria l assumptions a nd methods used tomeasure pension liabilities and costs for financial reporting purposes are
a ppropria te in th e circumsta nces.
REPRESENTATIONSRELATINGTOINTERNALCONTROLS
.12 Interna l control representa t ions when the auditor opines on interna l control
a re found in AT 400.41. These represent a tions rela te to ma na gement 's
(1) a cknow ledging its responsibility for intern a l control, (2) st a tin g th a t
ma na gement ha s a ssessed th e effectiveness of its interna l contr ol an d
specifying the control criteria used, (3) stating management's assertion about
th e effectiveness of its intern a l contr ol ba sed on t he control criteria ,(4) sta ting th a t ma na gement h a s disclosed to the a uditor all significa nt
deficiencies in th e design or opera tion of int erna l control th a t could a dversely
a ffect th e entity's a bility to meet t he int erna l contr ol objectives a nd pointing
out those tha t a re mat erial wea knesses (using the definition in the
representa tion lett er, w hich is t he definition in AU 325), (5) describing a ny
fra ud, an d (6) sta ting w hether th ere w ere a ny cha nges to interna l cont rol
subsequent to the end of the report ing period. Where the a udit or is not
opining on int erna l control, he or she should delete representa tions 2 an d 3
a bove. Depending on circumsta nces, th e a udit or should consider modifying
representa tion 4 a bove to remove the phra se "pointing out th ose tha t a rema terial w eaknesses." The auditor also should modify the introductory
para gra ph to th e representa tion letter.
.13 For i tems 2 and 3 , the auditor expects ent i t ies to use cr i ter ia es tab l ished
under FMF IA an d OMB Circula r A-123 in th eir F MFIA interna l control
a ssessment . St a nda rds in G AO's green pa mphlet Standard s for I ntern al
-
8/12/2019 Audit Checklist for Letter of Credit6
22/84
Reporting
1001 - Management Representations
December 2000 GAO/PCIE F inancia l Audit Manua l - Pa r t I I Pa ge 1001-6
Cont r ol i n t he Feder al Gover nm entw ere established as sta nda rds for federa l
entit ies to follow , an d th ey w ere incorpora ted by OMB int o Circular A-123.
The N ovember 1999 upda te t o th ese st a nd a rd s (G AO/AIM D -00-21.3.1) iseffective for fisca l yea r 2000 FMFI A reports a nd incorporat es concepts from
the private sector guidance I ntern al Contr olI ntegrated Fr ameworkby the
Committee of Sponsoring Orga niza tions (COSO) of t he Treadw a y
Commission. En tit ies should summa rize in the representa tion letter an y
ma terial w eaknesses relat ing to financial reporting (including sa fegua rding),
complian ce (including budget), an d performa nce mea sures controls. E xam ple
w ording for the representa tions is given in section 1001 A for the case w here
ma na gement a sserts t ha t i ts internal control as of the dat e of the f inancia l
sta tements provided reasonable assura nce tha t misst a tements, losses, or
noncomplia nce ma terial in r ela tion to the finan cia l sta tements or requiredsupplementa ry st ewa rdship informa tion w ould be prevented or detected on a
timely basis. If there a re ma teria l w eaknesses, ma na gement should include
a brief description of th em in its representa tion lett er a nd modify its
a ssertion a ccordingly.
.14 For ent i t ies tha t have not formal ly assessed the ef fect iveness of the ir
interna l cont rol, AT 400 provides tha t t he a uditor ma y a ssist ma na gement in
its a ssessment by gat hering or preparing informa tion t ha t m an agement ca n
use in eva luat ing th e effectiveness of its interna l cont rol. The aud itor may
a lso use the informa tion in forming a n opinion on interna l cont rol. Thus, th e
exa mple representa tions a re a ppropria te for inclusion in the m a na gementrepresenta t ion let ter i f man agement a nd t he a uditor a gree on t he
conclusions r egar ding t he effectiveness of intern a l control.
REPRESENTATIONS RELATING TO FINANCIAL MANAGEMENT
SYSTEMS' SUBSTANTIAL COMPLIANCE WITH FFMIA
REQUIREMENTS
. 15 FFMIA requ ires the audi tor who per forms a CFO Act a udi t t o repor t whe ther
the entity's finan cial ma na gement syst ems comply substa nt ially wit h (1)
federal finan cia l ma na gement systems r equirement s, (2) a pplica ble federa la ccounting st a nda rds (now recognized a s generally a ccepted a ccounting
principles), an d (3) th e SG L a t t he tra nsa ction level. In order to report in
a ccordance with FFMI A, the a uditor should obta in representa tions from
ma na gement a s to the entity 's systems' compliance w ith t hese requirements.
-
8/12/2019 Audit Checklist for Letter of Credit6
23/84
Reporting
1001 - Management Representations
December 2000 GAO/PCIE F inancia l Audit Manua l - Pa r t I I Pa ge 1001-7
.16 The auditor shou ld ob t a in represent a t ions tha t mana gement t akes
responsibility for complying substa ntia lly wit h t he FFMI A requirement s,
sta ting th a t it ha s assessed the systems' complia nce, sta ting th e criteriaused, and asserting the systems' substantial compliance (or lack thereof).
The criteria should be th e requirement s in OMB Circula r A-127, Financial
M anagement Systems(wh ich incorporat es the SG L, the J FMIP Federal
Fi nan cia l M anagement Systems Requi r ement sdocuments, a nd other OMB
circular s). These requirement s ar e furt her described, including indicat ors of
substa nt ial complia nce, in OMB 's FF MIA implementa tion guidan ce for C FOs
a nd IG s, referenced in OMB 's a udit guida nce.
REPRESENTATIONSRELATINGTOCOMPLIANCEWITHLAWS
ANDREGULATIONS
.17 AU 801.07 sugges t s tha t a represent a t ion rela t ing to compl iance w i th law s
a nd regulat ions sta te tha t ma na gement ha s ident if ied a nd disclosed to the
a uditor a l l law s an d regulat ions that ha ve a direct a nd ma teria l effect on the
financial sta tements.
.18 In addi t ion, AT 500 (SSAE 3) dea ls wi th compliance a t t es ta t ion. The audi tor
is not required to follow this st a nda rd beca use it does not a pply to aud its
reporting on compliance a s part of a n a udit of fina ncia l sta tements or on
a udits reporting in a ccordance with Government Audi t in g Standard s.
However, in situa tions in which the a uditor believes additiona lrepresenta tions regar ding complia nce may be needed, exa mples a re given in
AT 500.70.
EFFECTOFCHANGEINMANAGEMENTONREPRESENTATION
LETTER
.19 Somet imes mana gement is relucta nt to s ign representa t ions for per iods
w hen it did not ma na ge th e entity. The auditor should explain t o
ma na gement tha t by issuing the f ina ncial sta tements, i t is making the
a ssert ions implicit in the financia l sta tements. Mana gement may w ish toundersta nd th e tra nsa ctions and contr ols supporting th e finan cia l
sta tements, a nd t he audit or should help it do so. Where a chan ge in
ma na gement is expected, the auditor may advise the new ma na gement to
obta in representa tions from t he old ma na gement a bout t he period prior t o
th e cha nge.
-
8/12/2019 Audit Checklist for Letter of Credit6
24/84
Reporting
1001 - Management Representations
December 2000 GAO/PCIE F inancia l Audit Manua l - Pa r t I I Pa ge 1001-8
[This page intentionally left blank.]
-
8/12/2019 Audit Checklist for Letter of Credit6
25/84
Reporting
1001 A - EXAMPLE MANAGEMENT
REPRESENTATION LETTER
December 2000 G AO/P CI E Fina ncial Audit Manua l - P a rt II P a ge 1001 A-1
[Ent ity Let terhead]
[Da te of aud itor's report a nd completion of fieldw ork]
The Honora ble [na me of Ins pector G enera l or Comptr oller G enera l]
[In spector or Comptroller] G enera l [of th e Un ited S ta tes]
[Na me of a gency] [or U .S. G enera l Accountin g Office]
Wa shingt on, D.C.
Dea r [na me]:
This lett er is in connection w ith y our au dits of th e [entit y's] ba la nce sheet a s
of September 30, 20X1 and 20X2, [or da tes of a udit ed fina ncial st a tement s]
a nd t he related st a tements of net costs, cha nges in net position, budgetar y
resources, fina ncing, an d custodia l activit y [if applica ble], for t he yea rs t hen
ended for th e purposes of (1) expressing a n opinion a s t o whet her t he
finan cia l sta tements a re present ed fa irly, in a ll ma teria l respects, in
conformit y w ith genera lly a ccepted a ccountin g principles, (2) expressing a nopinion [or reporting] on [entity's] internal control as of September 30, 20X2
[or da te of latest a udited fina ncia l sta tements], (3) reporting w hether t he
[entity's] finan cial ma na gement sy stems substa nt ially comply with federal
finan cia l ma na gement systems requirements, a pplica ble federal a ccounting
standards (generally accepted accounting principles), and the U.S.
Gover nm ent Stan dar d Gener al L edgera t t he tra nsact ion level as of
September 30, 20X2, a nd (4) test ing for complia nce wit h a pplicable law s a nd
regulations.
Certa in representa tions in this letter a re described a s being limited to
ma tters tha t a re materia l . For purposes of this let ter , ma tters are
considered ma teria l if th ey involve $X or more. It ems also ar e considered
ma teria l, regardless of size, if th ey involve an omission or misst a tement of
a ccount ing informa tion tha t, in t he light of surrounding circumst a nces,
-
8/12/2019 Audit Checklist for Letter of Credit6
26/84
Reporting
1001 A - Example Management Representation Letter
December 2000 G AO/P CI E Fina ncia l Audit Manu a l - P a rt II P a ge 1001 A-2
ma kes it proba ble th a t t he judgment of a r easonable person relying on the
informa tion w ould be cha nged or influenced by t he omission or
misstatement .
We confirm, t o the best of our kn owledge a nd belief, the follow ing
representa tions ma de to you during t he au dits (these representa tions ar e as
of [da te of completion of fieldwork], perta in t o both yea rs' fina ncial
sta tements, a nd upda te th e representa tions we provided in t he prior yea r):
1. We are responsible for th e fa ir presentat ion of the financial sta t ements
a nd st ewa rdship informa tion in conformity w ith generally a ccepted
a ccounting principles.
2. The financial sta tements a re fa ir ly presented in conformity with
genera lly a ccepted a ccounting principles.
3. We have made ava il able t o you a l l
a . f inancia l r ecords and rela t ed da t a ,
b. w here a pplica ble, minutes of meetings of the Board of Directors [or
other sim ilar bodies, such a s congr essiona l oversigh t committ ees] or
summa ries of a ctions of recent m eetings for w hich minutes ha ve not
been prepared, a nd
c. communicat ions from the Office of Man a gement and B udget (OMB)
concerning n oncomplia nce wit h or deficiencies in fina ncial r eport ing
practices.
4. There are no mat eria l t ra nsact ions tha t h ave not been properly recorded
in th e accounting records underlying the fina ncia l sta tements or
disclosed in the notes to the financial sta tements.
5. We believe tha t the effects of the uncorrected f inancial st a t ementmissta tements summa rized in th e accompa nying schedule a re
immat eria l , both individually and in the a ggregat e , to the f inancia l
sta tements t a ken as a w hole. [An example a ccompan ying schedule is
included in section 595 C.] [If ma na gement believes tha t cert a in of the
identified items a re not misst a tements, ma na gement s belief ma y be
a cknow ledged by ad ding t o th e represent a tion, for exam ple, "We believe
-
8/12/2019 Audit Checklist for Letter of Credit6
27/84
Reporting
1001 A - Example Management Representation Letter
December 2000 G AO/P CI E Fina ncial Audit Manua l - P a rt II P a ge 1001 A-3
tha t items XX a nd XX do not constit ute missta tements beca use
[description of rea son]."] [This represent a tion is requir ed for a udit s of
financial statements for periods beginning on or after December 15,1999.]
6. The [ent i ty] ha s sat isfactory t i t le to a l l own ed assets, including
stewa rdship property , pla nt, a nd equipment; such a ssets ha ve no liens or
encumbra nces; a nd no assets ha ve been pledged.
7. We have no plans or intent ions tha t ma y ma ter ia l ly a f fect the carry ing
va lue or classifica tion of assets a nd liabilit ies.
8. G uara ntees under wh ich the [ent i ty] is cont ingently liable ha ve beenproperly reported or disclosed.
9. Relat ed party t ran sact ions and related accounts receivable or paya ble,
including a ssessment s, loa ns, a nd gua ra nt ees, ha ve been properly
recorded a nd disclosed.
10. All intraent i ty t ra nsa ct ions a nd ba lances ha ve been appropriat ely
identified and eliminated for financial reporting purposes, unless
oth erwise noted. All intra governmenta l tra nsa ctions a nd balan ces ha ve
been a ppropria tely r ecorded, reported, a nd d isclosed. We ha ve reconciled
intra governmenta l t ra nsact ions a nd ba lances w ith t he appropria tetra ding part ners for th e four fiduciary tra nsa ctions identified in
Treasurys I ntr a-governmental Fi du ciar y Tr ansacti ons Accoun ti ng Gui de,
an d other intra governmenta l a sset , l iabili ty , a nd revenue amounts a s
required by OMB B ulletin 97-01, a s a mended.
11. There are no
a. possible violat ions of law s or regulat ions w hose effects should be
considered for disclosure in t he finan cia l sta tements or a s a basis for
recordin g a loss cont ingency,
b . ma teria l liabili t ies or gain or loss cont ingencies tha t a re required to
be accrued or disclosed t ha t ha ve not been a ccrued or disclosed, or
c. unasser ted cla ims or a ssessments tha t a re probable of assert ion a nd
must be disclosed th a t h a ve not been disclosed.
-
8/12/2019 Audit Checklist for Letter of Credit6
28/84
Reporting
1001 A - Example Management Representation Letter
December 2000 G AO/P CI E Fina ncia l Audit Manu a l - P a rt II P a ge 1001 A-4
12. We have complied w ith a ll aspects of cont ra ctual a greements t ha t w ould
ha ve a ma terial effect on th e fina ncial sta tements in th e event of
noncompliance.
13. No ma terial events or tra nsa ctions ha ve occurred subsequent t o
September 30, 20X2 [or da te of lat est a udited fina ncial sta tements], th a t
ha ve not been properly recorded in t he finan cia l sta tements a nd
stewa rdship informa tion or disclosed in t he notes.
14. There ha s been no ma terial fra ud (intentional missta tements or
omissions of am ounts or disclosures in fina ncia l sta tements a nd
misa ppropriat ion of a ssets tha t could ha ve a ma terial effect on the
finan cial sta tements or stewa rdship informa tion) or a ny fra ud involvingma na gement or employees w ho ha ve significa nt roles in interna l contr ol.
[If t here were a ny incidents of fraud meeting the foregoing criteria, th ey
should be described.]
15. We are responsible for esta blishing a nd ma inta ining interna l cont rol.
16. P ursuant to the Federa l Mana gers Financial Integrity Act , we have
a ssessed th e effectiveness of [entit y's] int erna l control in a chieving t he
following objectives:
a . rel iab i li ty of financia l repor t ing
transactions are properly recorded,processed, a nd sum ma rized to permit t he prepara tion of finan cial
statements and stewardship information in accordance with generally
a ccepted a ccounting principles, an d a ssets a re safeguar ded aga inst
loss from una uth orized a cquisition, use or disposition;
b . compliance wi th a ppl icab le laws a nd regula t ionst ra nsa ct ions are
executed in a ccorda nce with (i) la w s govern ing t he use of budget
a uthority a nd w ith other law s an d regulat ions that could have a
direct a nd ma terial effect on the fina ncia l sta tements a nd (ii) a ny
other la w s, regulat ions, a nd governmentw ide policies identified byOMB in i ts a udit guidance; an d
c. reliabili ty of performa nce report ingt ransa ct ions and other da ta tha t
support report ed performa nce measur es a re properly recorded,
processed, a nd summa rized to permit the prepara tion of performa nce
information in accordance with criteria stated by management.
-
8/12/2019 Audit Checklist for Letter of Credit6
29/84
Reporting
1001 A - Example Management Representation Letter
December 2000 G AO/P CI E Fina ncial Audit Manua l - P a rt II P a ge 1001 A-5
17. Those controls in pla ce on September 30, 20X2 [or da te of lat est a udit ed
finan cia l sta tements], provided rea sona ble a ssura nce th a t t he foregoing
objectives a re met .
[If t here ar e ma terial w eaknesses, the foregoing representa tion
should be modified t o read:
Those contr ols in pla ce on S eptember 30, 20X2, provided
reasonable assurance that the foregoing objectives are met except
for the effects of th e ma teria l wea knesses discussed below or in
the a t t a chment .
or: In tern a l cont rols a re not effective.
or: In tern a l controls do not meet t he foregoing objectives.]
18. We ha ve disclosed t o you a ll significa nt deficiencies in th e design or
opera tion of interna l cont rol tha t could a dversely a ffect th e entity's
a bility to meet th e interna l cont rol objectives a nd ident ified t hose we
believe to be ma teria l wea knesses. [This item is not required if th e
a uditor is not opining on int erna l cont rol.]
19. There ha ve been no cha nges to interna l contr ol subsequent to
September 30, 20X2 [or dat e of lat est a udit ed fina ncial st a tement s], orother factors tha t might significa ntly a ffect it . [If there were changes,
describe them, including a ny corrective actions ta ken w ith r egard to a ny
significan t deficiencies or ma teria l wea knesses.] [This item is not
required if the a uditor is not opining on interna l contr ol.]
20. We are responsible for implementing a nd ma inta ining finan cial
ma na gement systems tha t comply substan t ia l ly w ith federa l f ina ncial
management systems requirements, federal accounting standards
(genera lly a ccepted a ccounting principles), a nd t he U .S. Gover nm ent
Standar d Gener al L edgera t t he tra nsact ion level .
21. We ha ve a ssessed the financial ma na gement syst ems to determine
whether they comply substantially with these federal financial
ma na gement systems requirements. Our assessment wa s based on
guidan ce issued by OMB .
-
8/12/2019 Audit Checklist for Letter of Credit6
30/84
Reporting
1001 A - Example Management Representation Letter
December 2000 G AO/P CI E Fina ncia l Audit Manu a l - P a rt II P a ge 1001 A-6
22. The fina ncia l mana gement syst ems complied substa ntia lly w ith federa l
finan cial ma na gement syst ems requirements, federal a ccount ing
standa rds , and t he U .S. Gover nm ent St and ar d Gener al L edger a t t h etra nsa ction level as of [da te of the lat est finan cial sta tements].
[If the finan cial ma na gement syst ems substa ntia lly comply with only
one or tw o of th e above element s, th is represent a tion should be
modified as follow s:
As of [da te of fina ncial st a tement s], the [entit ys] fina ncial
ma na gement systems comply substa ntia lly wit h [specify wh ich of
the three elements for which there is substantial compliance (e.g.,
federal accounting sta nda rds and t he SG L a t the tra nsact ionlevel)], but did not comply subst a nt ia lly w ith [specify w hich of th e
element s for w hich t here wa s a lack of substa nt ial compliance
(e.g. , federal fina ncia l ma na gement systems requirements)], a s
described below (or in an attachment).]
[If th e fina ncia l man a gement sy stems do not comply substan tia lly
w ith a ny of thee three elements, t he follow ing para gra ph should be
used instead:
As of [da te of fina ncial st a tement s], the [entit y's] fina ncial
ma na gement systems do not comply substa nt ia l ly w ith t hefederal financial management systems requirements.]
[If t here is a la ck of subst a nt ia l compllia nce w ith one or more of th e
th ree requirements, identify herein or in a n a tt a chment all the facts
perta ining to th e noncomplia nce, including the na ture a nd extent of
th e noncomplia nce a nd t he primary reason or ca use of th e
noncompliance.]
23. We ar e responsible for [entit y's] complia nce w ith a pplicable law s a nd
regulations.
24. We have identified a nd disclosed to you a ll la w s a nd regulat ions th a t
ha ve a direct a nd ma terial effect on the determina tion of financial
sta tement am ounts.
-
8/12/2019 Audit Checklist for Letter of Credit6
31/84
Reporting
1001 A - Example Management Representation Letter
December 2000 G AO/P CI E Fina ncial Audit Manua l - P a rt II P a ge 1001 A-7
25. We ha ve disclosed to you all known insta nces of noncompliance with law s
an d regulat ions.
[Na me of Hea d of Entit y]
[Title]
[Na me of Chief Fina ncial Officer]
[Title]
-
8/12/2019 Audit Checklist for Letter of Credit6
32/84
[This pa ge intent iona lly left bla nk.]
-
8/12/2019 Audit Checklist for Letter of Credit6
33/84
Reporting
1002 - RESERVED
December 2000 GAO/PCIE F inancia l Audit Manua l - Pa r t I I Pa ge 1002-1
-
8/12/2019 Audit Checklist for Letter of Credit6
34/84
[This pa ge intent iona lly left bla nk.]
-
8/12/2019 Audit Checklist for Letter of Credit6
35/84
Reporting
1003 - FINANCIAL STATEMENT AUDIT
COMPLETION CHECKLIST
D ecember 2000 G AO/P C IE Fina ncia l Audit Ma nua l - P a rt II P a ge 1003-1
Ent i ty :
J ob C ode: ___________________________________________________________________
Principal Report:
Oth er Report s (including ma na gement letters):
INSTRUCTIONS
.01 This checklist i s a tool to help audi tors of financia l sta tements comply wi th
genera l ly a ccepted government a udit ing standa rds a nd w ith OMB audit guidance.
This checklist should be completed before th e report is issu ed a nd should be
prepared by the audit ma na ger and reviewed by the a ssista nt director and a udit
director. If th e audit is conducted at multiple sites, the site supervisor may
complete pa rt s of the checklist for each site (wit h t he a udit ma na ger completing a n
overall checklist). While pa rt s of the checklist a re useful in au dit pla nnin g, no
specific signat ures a re required on th e checklist in th e pla nning pha se.
.02 The deta i led quest ions in this checklist a re to be answered "N/A" (not a ppl icable),
" Yes," or " No." Check N/A wh en the item does not exist or wh en the item exists butis judged to be not ma teria l. It is not necessa ry t o create a dditional documenta tion
to support th e Yes a nsw ers, but a column is provided t o give a w orkpa per reference
(" W/P " ). All No a nsw ers should be discussed at t he end of th is checklist. B eca use
th e checklist is designed for th e wide ra nge of finan cia l sta tement a udits, th ere will
be ma ny " not applicable" an swers. If the reason why a q uestion is not applicable is
not obvious, the a uditor should document th e reason on th e checklist or in a n
a tt a chment. The questions a re summa rized; for most questions, there is a
reference to professional litera tur e tha t provides more deta il .
.03 Sect ion V has quest ions on GAOs report considerat ions ; sect ion VI ha s quest ions
on G AOs qu a lity contr ol. G AO a udit ors should complete th ese sections. IGa uditors a nd other a uditors ma y use these sections or may substi tute forms t ha t
consider their report ing style a nd q ua lity contr ols.
.04 As noted in FAM 650, auditors whose work GAO and the IGs use may complete th is
checklist an d the " Checklist for Report s Pr epared under the CFO Act." Where th is
-
8/12/2019 Audit Checklist for Letter of Credit6
36/84
Reporting
1003 - Financial Statement Audit Completion Checklist
D ecember 2000 G AO/P C IE Fina ncia l Audit Ma nua l - P a rt II P a ge 1003-2
ha s been done, GAO or I G a uditors should review t he checklists prepared by t he
other auditors.
.05 The FAM includes a separat e "Checklist for Reports Prepared under the CFO Act "
(section 1004) that covers accounting, financial reporting, and disclosure issues and
should be completed for all entities reporting under generally accepted accounting
principles promulga ted by F ASAB. When th e report covers finan cia l sta tements
prepa red using genera lly accepted a ccounting principles promulgated by FASB , th e
a uditor should prepar e th e a ppropriat e AIC P A disclosure checklist.
.06 GAO auditors should prepare the "G AO workpaper set " t ha t provides guidance on
workpa pers. IG a nd oth er a uditors may develop simila r tools.
.07 For G AOs f inanci a l audi t s, a second par tner rev iew should be per formed and the
Chief Accounta nt should read t he report . These reviews by t he second part ner
a nd/or Chief Account a nt a re document ed on th e la st tw o pages of th is checklist. IG
a uditors a nd other a uditors should consider th e need for simila r r eviews.
-
8/12/2019 Audit Checklist for Letter of Credit6
37/84
Reporting
1003 - Financial Statement Audit Completion Checklist
December 2000 GAO/PCIE F inanci a l Audit Manua l - Pa r t I I Pa ge 1003-3
CONTENTS
Section
I . P lanning and Concluding the Audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
II . Key Audit Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
II I. Consulta tion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
IV. Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
V. G AOs Report Considerat ions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
VI. G AOs Quality Cont rol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
VII. Explan a tion of " No" Answ ers and Oth er Comments . . . . . . . . . . . . . . . . . . . 31
VIII . Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
IX. Second P a rt ners concurrence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
X. Chief Account a nts concurrence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
References:
AIC P A P rofessiona l St a nda rds (vol. 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AU
G AO/P CI E F ina ncial Audit Ma nua l . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . FAM
G overnment Auditing St a nda rds, as a mended . . . . . . . . . . . . . . . . . . . . . . . G AG AS
-
8/12/2019 Audit Checklist for Letter of Credit6
38/84
Reporting
1003 - Financial Statement Audit Completion Checklist
D ecem ber 2000 G AO/P C IE Fina ncia l Audit Ma nua l - P a rt II P a ge 1003-4
S ect ion I : P la nning a nd C oncluding the Audit N/A Yes No W/P
1. D o t he w or kpa p er s docu m en t t h a t t h e a u di t
team ha s establ ished an understanding with
the client a s to t he objectives of the w ork,
management's responsibilities, auditors
responsibilities, and limit a tions of th e work?
(FAM 280) ___ ___ ___ ___
2. Were ent ra nce conferences held? ___ ___ ___ ___
3. Does the ent i t y prof ile (or equ iva len t )
document a n understa nding of the entitysufficient t o pla n the a udit ? (FAM 290.03) ___ ___ ___ ___
4. D o t h e w or kpa p er s con t a in a n a d eq u a t e
general risk analysis or the equivalent? (FAM
290.04)
___ ___ ___ ___
5. D id t h e a u d it t ea m a d eq u a t el y per for m a n d
document t he follow ing plannin g steps? (FAM
290.04)
a . P er for m pr elim in a ry a na ly tica l
procedures (FAM 225)
b. D et er m in e pla n n in g, des ig n, a n d t es t
ma teria lity (FAM 230)
c. I den t ify s ig nifica n t la w s a n d r eg ula t ion s
(FAM 245)
d . I d en t if y r elev a n t b ud get r es t ri ct ion s
(FAM 250)
e. U n der st a n d t h e bu dg et for mu la t ion
process (FAM 260.51)
(contin ued on next page)
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
-
8/12/2019 Audit Checklist for Letter of Credit6
39/84
Reporting
1003 - Financial Statement Audit Completion Checklist
Sect ion I : P la nning a nd Concluding t he Audit N/A Yes No W/P
D ecember 2000 G AO/P C IE Fina ncia l Audit Ma nua l - P a rt II P a ge 1003-5
5. (continued)
f. As ses s in her en t r isk a n d t h e ov er a ll
effectiveness of th e contr ol environment ,
risk assessment, communicat ion, a nd
monitoring, including w hether
w eaknesses in the cont rol environment,
risk assessment, communicat ion, a nd
monitoring preclude t he effectiveness of
specific control activities (FAM 260)
g . Assess the r isk of f raud (FAM 260)
h . D es ig n t he a ud it t o a ch ieve a n a c cept a b le
level of audit assura nce tha t t he
financial sta tements are not mat erial ly
misst a ted (GAO uses 95 percent ) (FAM
260.04)
i. C on sid er t he ef fect s of in form a t ion
technology, in cluding service cent ers
(FAM 220, 260.17, 260.41-42, a nd 270)
j. Assess the FMFIA process (FAM 260.43)
k . Cons ider opera t ions cont rol s to be tes ted
(FAM 275)
l. U n der st a nd per for ma n ce mea s ur es
cont rols (FAM 275)
m. P lan o ther procedures (representa t ion
letters, rela ted party tra nsactions,
sensit ive pay ment s) (FAM 280)
n . Cons ider loca t ions to be v is ited (FAM
285)
(cont inued on next pa ge)
___
__
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
-
8/12/2019 Audit Checklist for Letter of Credit6
40/84
Reporting
1003 - Financial Statement Audit Completion Checklist
S ect ion I : P la nning a nd C oncluding the Audit N/A Yes No W/P
D ecem ber 2000 G AO/P C IE Fina ncia l Audit Ma nua l - P a rt II P a ge 1003-6
5. (continued)
o. P l a n pr oced ur es t o t es t com pl ia n ce w i t h
the requirement s of FFMIA (FAM
350.20)
p. C on sid er st a f fin g r eq uir em en t s
q. Consider timing of procedures a nd
milest ones (FAM 295 D)
r. Consider assista nce from entitypersonnel
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
6. D oes t h e g en er a l r isk a n a l y sis or t h e
equiva lent reflect a ppropriat e considerat ion of
findings a nd recommend a tions from previous
audits tha t could affect t he current a udit
object ives? (G AG AS , pa r . 4.10) ___ ___ ___ ___
7. Did the aud it t eam ident i fy budget con t rols for
each relevant budget restriction and performsufficient w ork to support t he conclusions on
int erna l cont rol? (FAM 250, 310.05, 330.09) ___ ___ ___ ___
8. Did the aud it t eam ident i fy compl iance
cont rols and perform su fficient w ork to
support th e conclusions on int erna l cont rol?
(FAM 245, 310.05, 330.09) ___ ___ ___ ___
9. I f t he a u di t t ea m u sed t h e w or k of ot h er s
(CP A firms, IG s, internal a uditors, orspecia lists), did the a udit t eam meet the
requirement s of FAM 650? ___ ___ ___ ___
-
8/12/2019 Audit Checklist for Letter of Credit6
41/84
Reporting
1003 - Financial Statement Audit Completion Checklist
S ect ion I : P la nning a nd Concluding t he Audit N/A Yes No W/P
D ecember 2000 G AO/P C IE Fina ncia l Audit Ma nua l - P a rt II P a ge 1003-7
10. Did the audit team perform overa l l ana ly t ica l
procedures, including document a tion of th e
following?
a . E xpect a tions
b. D at a/sources
c. P a ra met ers
d . E x pl a n a t ion s/cor r ob or a t ion
e. C on clus ion s (FAM 590.04)
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
11. Do the workpapers indica t e tha t the audit
tea m properly performed th e follow ing
procedures in th e report ing pha se of the
a udi t ? (FAM 590.01)
a . E v a lu a t e m is st a t em en t s (F AM 540)
b. B r in g a l l m is st a t em en t s t o t h e a t t en t ion
of entity ma na gement (FAM 540.07)
c O bt a in a t t or ney s' r epr es en t a t ion s (F AM
550.02)
d . Rev iew subsequen t even t s (FAM 550.04
a nd 1005)
e. O bt a in m a n a gem en t r epr es en t a t ion s
(FAM 550.08 an d 1001)
f. I den tify a nd test r ela t ed pa r tytr a nsa ctions (FAM 550.12 a nd 1006)
g . R ev iew t h e con sis t en cy of ot h er
informa tion a ccompanying the fina ncia l
st a tem ent s (FAM 580.76)
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
-
8/12/2019 Audit Checklist for Letter of Credit6
42/84
Reporting
1003 - Financial Statement Audit Completion Checklist
S ect ion I : P la nning a nd C oncluding the Audit N/A Yes No W/P
D ecem ber 2000 G AO/P C IE Fina ncia l Audit Ma nua l - P a rt II P a ge 1003-8
12. Does the aud i t summary memorandum or
equivalent properly summarize or refer to
w orkpapers addressing th e following? (FAM
590.02-.03)
a . C h a ng es fr om or ig in a l r is k a s ses sm en t s
b . Ad di t ion a l fr a u d r isk f a ct or s or ot h er
conditions identified during th e audit
calling for a n a ddit iona l response and
the a ddit iona l response
c. The bas is for conclus ions on s ign if ican t
audit ing, accounting, and report ing
issues
d . Conclus ions on adequacy of p rocedures
e. U na djust ed m isst a tem en ts
f. C on clu sion s on fin a n cia l st a t em en t s
g . C on clus ion s on in t er n a l con t r ol
h . C on clus ion s on com pl ia n ce w i t h la w s a n d
regulat ions and t he requirements of
FFMIA
i . C on clus ion s on t h e con si st en cy of
accompan ying informa tion with the
principal sta tements
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
-
8/12/2019 Audit Checklist for Letter of Credit6
43/84
Reporting
1003 - Financial Statement Audit Completion Checklist
S ect ion I : P la nning a nd Concluding t he Audit N/A Yes No W/P
D ecember 2000 G AO/P C IE Fina ncia l Audit Ma nua l - P a rt II P a ge 1003-9
13. Do the workpapers document tha t the
following occurred?
a . D ev ia t i on s f rom t h e " sh ou ld " pr oced ur es
in the FAM a nd the basis t herefor were
a pproved by the a ssistan t director wit h
copies of the documenta tion sent t o the
audit director a nd the reviewer
b . D ev ia t i on s f rom t h e " m u st " pr oced ur es in
th e FAM were a pproved by the reviewer
(FAM 100.27)
___
___
___
___
___
___
___
___
-
8/12/2019 Audit Checklist for Letter of Credit6
44/84
Reporting
1003 - Financial Statement Audit Completion Checklist
D ecem ber 2000 G AO/P C IE Fin an cia l Audit Ma nua l - P a r t I I P a ge 1003-10
S ect ion I I : Key Audit Area s N/A Yes No W/P
Answ er these questions for each key audit ar ea or
cycle. Ind ica te the key a udit ar eas a nd cycles
these questions apply to:
1. D id th e a ud it t e a m pr epa r e t h e f ol low in g
documentation summarizing considerations in
pla nning a nd performing t he w ork in the keyaudit a reas a nd cycles?
a . C y cle M a t rix or a n eq uiv a len t (or
document a tion in Account Risk Analysis
or an equivalent) showing links between
a ccounts, cycles, a pplica tions a nd line
items (FAM 290.05)
b . Accou n t Risk An a ly si s or a n e qu iv a len t
(FAM 290.06)
c. C y cle M em or a n d um a n d /or f low ch a r t or
equivalents (FAM 390.04-.05)
d . S pecific C on t rol E va lu a t ion or a n
equiva lent (FAM 390.06)
e. Wr it t en a u d it pr og r a m (AU 311.05)
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
2. I f condit ions changed during the course of the
audit , w a s the audit progra m modified as
a ppropriat e in the circumsta nces? (AU311.05) ___ ___ ___ ___
-
8/12/2019 Audit Checklist for Letter of Credit6
45/84
Reporting
1003 - Financial Statement Audit Completion Checklist
S ect ion I I : K ey Audit Area s N/A Yes No W/P
D ecem ber 2000 G AO/P C IE Fin an cia l Audit Ma nua l - P a r t I I P a ge 1003-11
3. When the audi t t eam per formed sampl ing , d id
it properly determine and document the
following?
a . Th e m et h od u sed in r ela t ion t o t es t
objectives
b. S a m ple s ize a n d t he m et hod of
determining it
c. Test s perfor med
d . R es ult s (m is st a t em en t s a nd d ev ia t ion s
found)
e. Eva lua t ion (includ ing project ion to the
population)
f. C on clu sion (F AM 490.06)
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
4. When the aud i t t eam performed subs t an t ive
a na lytical procedures, did it properly
document th e follow ing?
a . E xpect a t ion s a n d t h e m et h od u sed t o
develop them
b. D a t a s ou rces /r elia b ilit y
c. L im it /crit er ia
d . C l ien t expl a na t i on s a n d cor r ob or a t in g
evidence
e. Ad dit ion a l s teps needed
f. C on clu sion s (F AM 490.06)
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
-
8/12/2019 Audit Checklist for Letter of Credit6
46/84
Reporting
1003 - Financial Statement Audit Completion Checklist
S ect ion I I : Key Audit Area s N/A Yes No W/P
D ecem ber 2000 G AO/P C IE Fin an cia l Audit Ma nua l - P a r t I I P a ge 1003-12
5. When the aud it t eam per formed in ter im
test ing, did it do the following?
a . Tes t t h e r ollfor w a r d per iod
b. P r oper ly docum en t:
1. Th e ba s is for u sing in t er im t e st ing
2. Th e pr oced ur es p er for m ed
3. Th e ef fect s of a n y miss t a t em en t sfound (FAM 495C .06)
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
6. D id th e a u dit t ea m ev a lu a t e t h e
rea sonableness of significa nt a ccounting
est ima t es ma de by ma na gement ? (AU 342) ___ ___ ___ ___
7. Wer e kn ow n a n d lik ely m is st a t e men t s
identif ied in t he test ing of the key ar ea carr ied
forw ar d to the summ ar y of possible
a djustment s? (FAM 540.04) ___ ___ ___ ___
8. D id a n inf or m a t ion sy st em s a u d it or r e view
the specific cont rol eva lua tion to evalua te th e
a udit t eam 's decision on which contr ols a re
computer-relat ed (including cont rols rela ting
t o ser vice-cent er-produced record s)? (FAM
350.09) ___ ___ ___ ___
-
8/12/2019 Audit Checklist for Letter of Credit6
47/84
Reporting
1003 - Financial Statement Audit Completion Checklist
S ect ion I I : K ey Audit Area s N/A Yes No W/P
D ecem ber 2000 G AO/P C IE Fin an cia l Audit Ma nua l - P a r t I I P a ge 1003-13
9. Ba sed on the inherent and con t rol ri sk , d id
the audit team perform a dequat e substa ntive
test s of the follow ing? (If not a key a rea ,
check the N/A box.)
Fund Balance with Treasury (FBWT)
Consider th ese issues:
Did the a udit team test the a gency's
yea r-end reconciliat ion of Fund B a lan ces
w ith Trea sury t o Trea sury a ccountledgers an d tria l bala nce reports
(Fina ncial Mana gement Service (FMS)
For ms 6653, 6655)?
Did the audit t eam determine whether
th e audit ee did the following?
1. Researched and resolved d if ferences
before making a djustments
2. R ecor ded a n y n eces sa r yadjustments in the a gency's FB WT
accounts
3. R epor t ed t he a d ju st m en t s t o
Treasury
4. D i sclosed in t h e n ot es t o t h e
f inancia l s ta t ements m at er ia l
unreconciled differences a nd budget
clear ing a ccount differences at yea r-
end, and material unreconciled
differences wr itt en off by the a gency
during the year?
(continu ed on next page)
___ ___ ___ ___
-
8/12/2019 Audit Checklist for Letter of Credit6
48/84
Reporting
1003 - Financial Statement Audit Completion Checklist
S ect ion I I : Key Audit Area s N/A Yes No W/P
D ecem ber 2000 G AO/P C IE Fin an cia l Audit Ma nua l - P a r t I I P a ge 1003-14
Fund B ala nce with Treasury (continued)
Did the audit t eam a ssess (a t a bsolute
va lue) th e ma teria lity of unreconciled
differences, such as those report ed on the
Statement of Differences (FMS form
6652) and those included in budget
clear ing a ccounts (such a s budget
accounts F3875, F3878, F3879)?
(GAO/AIMD -97-104R)
Receivables
Consider th ese issues:
Where pra ctica l, w ere a ccounts
receivable confirmed a nd a ppropriat e
follow-up steps taken, including second
request s a nd altern a te procedures? (AU
330.30-.31)
If substa ntive test w ere performed prior
to yea r-end, wa s there an a dequat e
review of tra nsa ct ions from t he interim
da te to th e ba lan ce sheet dat e? (AU
313.08-.09)
If a significan t number a nd am ount of
a ccounts receivable w ere not confirmed,
were other appropriate a udit ing
procedur es perform ed? (AU 330.31-.32)
___ ___ ___ ___
-
8/12/2019 Audit Checklist for Letter of Credit6
49/84
Reporting
1003 - Financial Statement Audit Completion Checklist
S ect ion I I : K ey Audit Area s N/A Yes No W/P
D ecem ber 2000 G AO/P C IE Fin an cia l Audit Ma nua l - P a r t I I P a ge 1003-15
Inventories
Consider th ese issues:
Were physica l inventories observed a t a ll
locat ions wh ere ma terial a mounts were
locat ed? (AU 331)
If perpetual inventory records are
ma inta ined, do the workpapers indicat e
th a t differences disclosed by th e physica l
invent ory (or cycle count s) are properlyreflected in t he financial sta tements?
(AU 331)
When the physical inventory is ta ken at
a da te other tha n the ba lance sheet da te
(or w here rota ting procedures a re used),
did the a uditor consider inventory
tra nsa ct ions betw een th e inventory
da te(s) a nd the bala nce sheet dat e? (AU
313.08-09)
Do the workpapers contain evidence that
count s w ere correctly m a de an d recorded
(w a s cont rol over inventory t a gs or count
sheets m aint a ined) an d test count
qua ntit ies w ere reconciled w ith t he
count s reflected in t he fina l inventory?
(AU 331.09)
(continu ed on next page)
___ ___ ___ ___
-
8/12/2019 Audit Checklist for Letter of Credit6
50/84
Reporting
1003 - Financial Statement Audit Completion Checklist
S ect ion I I : Key Audit Area s N/A Yes No W/P
D ecem ber 2000 G AO/P C IE Fin an cia l Audit Ma nua l - P a r t I I P a ge 1003-16
Invent ories (contin ued)
Were there adequa te tests of the
following?
a . C ler ica l a ccu r a cy of t he in ven t or y
b. C os t in g met h od s a nd s ubs t a nt ia t ion
of costs used in pricing a ll element s
of the inventory
c. C ut off
Were an a lytical procedures used t o test
the overall va lua tion of inventories?
Investments
Consider th ese issues:
Wa s a summ a ry schedule prepa red (or
obta ined) an d deta ils tested w ith r espect
to the description, purcha se price an d
da te, changes dur ing th e period, income,
market value, etc. of investments?
Were securities either exam ined or
confirm ed? (AU 332.04)
___ ___ ___ ___
-
8/12/2019 Audit Checklist for Letter of Credit6
51/84
Reporting
1003 - Financial Statement Audit Completion Checklist
S ect ion I I : K ey Audit Area s N/A Yes No W/P
D ecem ber 2000 G AO/P C IE Fin an cia l Audit Ma nua l - P a r t I I P a ge 1003-17
P roperty , P lant , a nd Eq uipment
Consider th ese issues:
Wa s a summ a ry schedule prepa red (or
obtain ed) to show beginning ba lan ces,
changes during the period and ending
ba lan ces for the following?
a . P r oper t y, pla n t , a n d eq uipm en t
b . Accu m ula t ed depr ecia t i on
Do the tests a ppear a dequate and w ere
proper conclusions dr a w n?
____ ___ ___ ___
Liabilities
Consider th ese issues:
Did the audit team perform a n a dequate
sear ch for un recorded lia bilities?
Did the audit team consider expenses
tha t m ight require a ccrual (e.g.,
pensions, compensa ted a bsences, other
postr etirement benefits, or
postemployment benefits provided to
former or ina ctive employees prior to
ret irement), a nd w hether a ccrued
expenses w ere reasonably sta ted?
___ ___ ___ ___
-
8/12/2019 Audit Checklist for Letter of Credit6
52/84
Reporting
1003 - Financial Statement Audit Completion Checklist
S ect ion I I : Key Audit Area s N/A Yes No W/P
D ecem ber 2000 G AO/P C IE Fin an cia l Audit Ma nua l - P a r t I I P a ge 1003-18
Revenue and Expenses
Consider th ese issues:
Did the a udit tea m compare revenue a nd
expenses for t he period to expecta tions,
based on the budget an d the results of
th e preceding period? (AU 329)
Were significant variances and
fluctua tions from expecta tions
expla ined ? (AU 329)
Did the a udit team consider the
following?
a . The ent i t y 's revenue recogn it ion
policy
b. U nusua l t ra nsa ct ion s
Do tests a ppear a dequat e and w ere
proper conclusions d ra w n?
___ ___ ___ ___
-
8/12/2019 Audit Checklist for Letter of Credit6
53/84
Reporting
1003 - Financial Statement Audit Completion Checklist
D ecem ber 2000 G AO/P C IE Fin an cia l Audit Ma nua l - P a r t I I P a ge 1003-19
S ect ion I I I : C onsult a t ion N/A Yes No W/P
1. Where wa rran ted by the complexit y or
unusua l nat ure of a n issue (for exam ple, issues
w here the FAM requires consulta tion, issues
not discussed in FAM or professional
sta nda rds, going concern, economic
dependency, issues arising a fter report
issuance), was there appropriate consultation
w ith specia lists, including the following?
The reviewer (FAM Appendix A)
The st a tis ticia n (FAM Appendix A)
The Office of Gener a l Coun sel (FAM
Append ix A)
The technical a ccount ing expert ? (FAM
100.25)
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
2. Were significant consulta t ions appropria t ely
documented? (FAM 100.24) ___ ___ ___ ___
3. Were the persons consul ted made awa re of a l l
releva nt fa ct s a nd circumst a nces? ___ ___ ___ ___
-
8/12/2019 Audit Checklist for Letter of Credit6
54/84
Reporting
1003 - Financial Statement Audit Completion Checklist
D ecem ber 2000 G AO/P C IE Fin an cia l Audit Ma nua l - P a r t I I P a ge 1003-20
S ect ion IV: Report N/A Yes No W/P
1. Does the audi tor 's repor t include the
following?
a . Int roduct ion
b . S ign if ica n t ma t t e rs (i f a p pl ica b le)
c. C onclusions on:
i. F ina ncia l st a t ement s
ii. I nt er na l con tr ol
ii i. C om pl ia n ce w i t h l a w s a n d
regulat ions and t he requirements of
the Federa l Financial Mana gement
Im provement Act of 1996 (FF MIA)
iv. Cons is tency of other in forma t ion
with f inancia l s ta t ements
d . Object ives , scope, and methodology ,
including description of all inst a nceswh ere G AG AS a nd OMB a udit guidan ce
w ere not follow ed
e. Agency comments (FAM 580.04, 580.81)
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
-
8/12/2019 Audit Checklist for Letter of Credit6
55/84
Reporting
1003 - Financial Statement Audit Completion Checklist
S ect ion IV: Repor t N/A Yes No W/P
D ecem ber 2000 G AO/P C IE Fin an cia l Audit Ma nua l - P a r t I I P a ge 1003-21
2. Is the aud i tor 's repor t appropria te a s t o the
following?
a . Wording
b. S cope of w ork
c. Genera l ly accep ted accoun t ing principles
d. E xpla na tor y pa ra gra phs
e. O pin ion on fin a n cia l s t a t em en t s
f. C on clu sion s on in t er na l con t rol
g . R epor t in g on com plia n ce w it h la w s a n d
regulat ions and t he requirements of
FF MI A (FAM 580)
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
3. Is background ma ter ia l (purpose, au thor i t y ,
a nd funct ions of progra ms/a ctivit ies) limit ed
to w ha t is necessa ry? ___ ___ ___ ___
4. Is the aud i tor 's repor t da ted in con formity
w ith professiona l sta nda rds? (AU 530) (FAM
1601) ___ ___ ___ ___
5. Does the auditor 's report cover a l l periods for
wh ich financial sta tements a re presented?
(AU 508.65) ___ ___ ___ ___
6. I f the f inancia l s t a t ements of a pr ior periodar e presented and ha ve been audited by a
predecessor au ditor w hose report is not
presented, does th e aud itor's report refer to
t he pr edecessor a udit or 's report ? (AU 508.74) ___ ___ ___ ___
-
8/12/2019 Audit Checklist for Letter of Credit6
56/84
Reporting
1003 - Financial Statement Audit Completion Checklist
S ect ion IV: Report N/A Yes No W/P
D ecem ber 2000 G AO/P C IE Fin an cia l Audit Ma nua l - P a r t I I P a ge 1003-22
7. Does the audi tor 's repor t descr ibe the
responsibility the auditor is taking for
supplementary information, including
stew a rdship informa tion? (AU 551; FAM
580.79) ___ ___ ___ ___
8. a . Wh en illeg a l a ct s in volve fu nds received
from other governmental entities, did the
audit team sa t is fy i t sel f tha t the audited
entity notified the proper officials of
those entit ies w ithin a reasonable t ime?
b . I f t h e en t it y did n ot , or w a s u na b le t o d o
so beca use th e top officia l w a s involved,
did the audit tea m report t hese acts to
the officials of those oth er governmenta l
entities? (G AG AS, par . 5.23)
___
___
___
___
___
___
___
___
9. Does the audi tor 's repor t include the
following?
a . I den t ifica t ion of w h ich ma t t er s a r ereport a ble conditions and w hich of the
reportable condit ions a re ma terial
w eaknesses (G AG AS, pa r. 5.27)
b. R efer en ce to a s epa r a t e let t er , if
a pplica ble, describing n onreport a ble
conditions (GAGAS, par. 5.28)
c. P r es en t a t ion of fr a ud , illeg a l a ct s , a n d
reportable noncompliance with law s a nd
regula tions (G AG AS, par. 5.18)
___
___
___
___
___
___
___
___
___
___
___
___
10. When appropria t e , d id the audit team issue a
sepa ra te report on fraud, a buse, or il legal a cts
or indica t ions of such a ct s? (G AG AS , pa r 5.21) ___ ___ ___ ___
-
8/12/2019 Audit Checklist for Letter of Credit6
57/84
Reporting
1003 - Financial Statement Audit Completion Checklist
S ect ion IV: Repor t N/A Yes No W/P
D ecem ber 2000 G AO/P C IE Fin an cia l Audit Ma nua l - P a r t I I P a ge 1003-23
11. Did the report d isclose the sta tus of a l l known,
but uncorrected, significant or material
findings a nd recommend a tions from prior
audits tha t affect current a udit object ives?
(G AG AS pa r . 4.10) ___ ___ ___ ___
12. Do the workpapers document a reasonable
bas is for t he follow ing?
a . Th e opinion a b ou t w h et h er t h e f in a n cia l
sta tements a nd disclosures comply in a llma terial respects w ith generally
a ccepted a ccount ing prin ciples (FAM
560)
b . The conclus ions on in terna l con t rol
c. The conclus ions about compl iance wi th
law s and regula t ions and t he
requirements of FFMIA
___
___
___
___
___
___
___
___
___
___
___
___
13. Do the workpapers document a reasonable
bas is for reported findings, including the
follow ing? (FAM 590.05-06)
a . I nt er na l con tr ol w ea kn es ses
b . I n st a n ces of n on com pl ia n ce w i t h la w s
an d regulat ions and t he requirements of
FFMIA
___
___
___
___
___
___
___
___
-
8/12/2019 Audit Checklist for Letter of Credit6
58/84
Reporting
1003 - Financial Statement Audit Completion Checklist
S ect ion IV: Report N/A Yes No W/P
D ecem ber 2000 G AO/P C IE Fin an cia l Audit Ma nua l - P a r t I I P a ge 1003-24
14. Do the findings include (wh ere appropriate)
the follow ing?
a . C on d it i on (d escr ib e t h e ex is t in g
situat ion)
b. C r it er ia (s ta t e w h a t w e a r e com pa r in g
to)
c. C a u se (r ef lect r ea son or rea son s w h y t he
condition a nd criteria d iffer)
d . E f fect (d escr ib e t h e r esul t of t he
difference betw een the condition a nd
criteria)
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
15. Are recommendat ions a nd suggest ions
rea sona ble, doa ble, a nd cost -effect ive? ___ ___ ___ ___
16. Does the presenta t ion of agency comments
include t he follow ing?
a . Ty pe of com m en t s ob t a in ed (or a l ,
wri t ten)
b . Ti t le of the most sen ior of ficia l (s)
involved
c. Accu ra t e ch a r a ct er iz a t ion of g en er a l
agr eement or disagr eement w ith the
report
d . D escr ipt ion of t h e sub st a n ce of t h ecomments
e. R esolu t ion of a ll su bs t a n t iv e com m en t s
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
-
8/12/2019 Audit Checklist for Letter of Credit6
59/84
Reporting
1003 - Financial Statement Audit Completion Checklist
D ecem ber 2000 G AO/P C IE Fin an cia l Audit Ma nua l - P a r t I I P a ge 1003-25
S ect ion V: G AOs Report Considera t ions Yes
1. Overa l l , does the report ha ve the fol lowing chara cter is t ics?
a . Pro fess iona l (the work ref lect s an unders t and ing of the
issues, an aw a reness of the external environment,
including sensit ivity to relevant trends, a nd a pract ical
approach to w ha t can be done to deal with the
problems noted)
b . Accura te (present s in forma t ion or f ind ings accura te ly ;
conta ins no nota ble errors in logic or rea soning)
c. Object ive (presenta t ion i s f a i r and impar t i a l ; t one i s
constructive and objective)
d . Fa ct -b a sed (s t a t es in for m a t ion a n d find in g s
completely , includes all necessa ry fa cts a nd/or
explana tions, dist inguishes between fa ct a nd un proven
or uncorroborat ed ma teria l, resolves conflicting
evidence)
e . Ba lanced (presen t s sound and log ica l ev idence to
support conclusions, d oes n ot use a djectives or a dverbs
to characterize evidence in a way that implies criticismor conclusions by innuendo, appropriately recognizes
positive as pects of the progra ms or issues reviewed)
f . Timely and useful (prov ides relevan t and t imely
information)
g . C lea r and concise (presenta t ion i s clea r , concise, and
well organized; message is presented logically; writing
style is a dapted t o the a udience)
_______
_______
_______
_______
_______
_______
_______
-
8/12/2019 Audit Checklist for Letter of Credit6
60/84
Reporting
1003 - Financial Statement Audit Completion Checklist
D ecem ber 2000 G AO/P C IE Fin an cia l Audit Ma nua l - P a r t I I P a ge 1003-26
S ect ion VI : G AOs Qua lit y C ont rol N/A Yes No W/P
1. Was the repor t reviewed by the fol lowing?
a . Audit D irect or
b. O ffice of t h e G e ner a l C ou ns el
c. C hief Account ant
d. S econd P a rtner
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
2. Did the aud i t d irector review the fol lowing?
(FAM 1301.17)
a . G e ner a l r is k a n a ly sis or eq uiv a len t
b . Accou n t ri sk a n a ly ses or eq u iv a len t for
ma terial a reas w ith high combined risk
c. M em or a n da on k ey a ccou nt in g a n d
a udit ing issues
d. S um ma r y m em or a nd a for ma t er ia l a rea s
with high or moderate combined risk
e. M a na g em en t r epr es en t a t ion let t er
f. L eg a l r epr es en ta t ion let t er
g . S u mm a r y of u na d ju st ed m is st a t em en t s
h. Audit s um ma ry m em or an dum
i. E xit con fer en ce m em or a ndu m
j. F ina ncia l st a tements
k . G AO w or kpa p er set (FAM 1301. 17)
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
-
8/12/2019 Audit Checklist for Letter of Credit6
61/84
Reporting
1003 - Financial Statement Audit Completion Checklist
S ect ion VI : G AOs Qua lit y Cont rol N/A Yes No W/P
D ecem ber 2000 G AO/P C IE Fin an cia l Audit Ma nua l - P a r t I I P a ge 1003-27
3. Did the a ss ist an t d i rector review the fol lowing?(FAM 1301.17)
a . E nt it y pr ofile or eq uiva len t
b . G e ner a l r is k a n a ly sis or eq uiva l en t
c. Accou nt r isk a n a l y ses or eq u iv a len t
d. I nit ia l a udit pr ogra ms
e. Lea d schedules
f. C om plet ed a udit pr ogr am s
g . M em or a n da on key a ccou nt in g a n d
audit ing issues
h . S umma ry memora nda
i . C h eck li st for repor t s pr epa r e d u n der th e
CF O Act (for sta tement s using G AAP
promulgated by FASAB)
j. F in a n cia l r epor t in g a n d d is clos ur e
checklist (for sta tement s using G AAP
promulgat ed by FASB )
k . M a na g em en t repr es en t a t ion let t er
l. L eg a l r epr es en ta t ion let t er
m . S u mm a r y of un a dju st ed m is st a t em en t s
n . E xit con fer en ce m em or a n du m
o. Audit sum ma ry mem or an dum
(contin ued on next page)
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
___
-
8/12/2019 Audit Checklist for Letter of Credit6
62/84
Reporting
1003 - Financial Statement Audit Completion Checklist
S ect ion VI : G AOs Qua lit y C ont rol N/A Yes No W/P
D ecem ber 2000 G AO/P C IE Fin an cia l Audit Ma nua l - P a r t I I P a ge 1003-28
3. (continued)
p. F ina ncia l st a t ement s
q . G AO w or kpa p er set (FAM 1301. 17)
___
___
___
___
___
___
___
___
4. D id t h e a s s is t a n t d ir ect or or a u d it m a n a g er
determine that all significan t r eview notes were
resolved a ppropria t ely? (FAM 1301.24) ___ ___ ___ ___
5. Did an a ss ist an t d i rector in i t ia l a l l workpaperbundle covers to indicate that all workpapers
w ere sufficient ly review ed? (FAM 1301.05) ___ ___ ___ ___
6. Were review notes, superseded versions of
workpapers, and draft reports (except the
referenced draft a nd the dra ft sent to the a gency
for comment), including review notes a nd
superseded versions in electronic form, placed in
a separ at e folder t o be reta ined until the report
is issued (unless th e au dit dir ector decides to
reta in them until th e next audit )? (FAM1301.24) ___ ___ ___ ___
7. Were review responsibi li t ies communica t ed to
a ll individua ls on th e a ssignment ? (FAM
1301.19) ___ ___ ___ ___
8. Were workpapers prepared by an informa t ion
systems a uditor subject to review by an
informa tion systems auditor for t echnical
content an d to review by a member of the a uditteam to determine that related a udit object ives
w ere a chieved? (FAM 1301.20) ___ ___ ___ ___
-
8/12/2019 Audit Checklist for Letter of Credit6
63/84
Reporting
1003 - Financial Statement Audit Completion Checklist
S ect ion VI : G AOs Qua lit y Cont rol N/A Yes No W/P
D ecem ber 2000 G AO/P C IE Fin an cia l Audit Ma nua l - P a r t I I P a ge 1003-29
9. For a r ea s t h a t a r e b ot h m a t er ia l a n d h a v e h ig hcombined risk, did t he a udit d irector or
a ssistan t director perform secondary reviews of
t he w orkpa pers? (FAM 1301.12) ___ ___ ___ ___
10. Were a l l workpapers prepared by the a udit
director or assista nt directors rea d by a udit
ma na gers or a uditors in charge to determine
their consistency w ith a ny relat ed workpapers?
(FAM 1301.15) ___ ___ ___ ___
11. If the workpa pers indicat ed a difference of
opinion between enga gement personnel or
between engagement personnel and a specialist
or other person consulted, w a s t he difference
resolved a ppropriat ely and w a s the ba sis of the
resolut ion documented? (FAM 1302) ___ ___ ___ ___
-
8/12/2019 Audit Checklist for Letter of Credit6
64/84
Reporting
1003 - Financial Statement Audit Completion Checklist
D ecem ber 2000 G AO/P C IE F in an cia l Audit Ma nua l - P a r t I I P a ge 1003-30
Section VII: Explanation of "NO" Answers and Other Comments
The follow ing pa ges ar e provided for comments on a ll "n o" a nsw ers or to expand
upon a ny of the "yes" a nswers.
Page Question Disposition
no. no. Explanatory comments of comments
-
8/12/2019 Audit Checklist for Letter of Credit6
65/84
Reporting
1003 - Financial Statement Audit Completion Checklist
D ecem ber 2000 G AO/P C IE Fin an cia l Audit Ma nua l - P a r t I I P a ge 1003-31
Section VIII: Conclusions: B ased on your review a nd
knowledge, do you believe the following?
Yes No*
1. The audi t t eam per formed the engagement , in a l l ma teria l
respects, in a ccordan ce w ith genera lly accepted
government a udit ing sta ndar ds (wh ich include genera lly
accepted a udit ing sta nda rds) and a pplicable OMB
guidance or t he a uditor's report w as a ppropriat ely
modified ___ ___
2. The financia l s t a t ements con formed , in a l l ma ter ia l
respects, w ith genera lly a ccepted a ccounting prin ciples or
the a udit or 's report w a s a ppropr ia tely modified ___ ___
3. Th e a udit or 's repor t w a s a ppr opr ia t e in the cir cum st a nces ___ ___
4. The documenta t ion on th is engagement supports :
The au ditors opinion on th e financial st a tement s
The auditors conclusions on internal control
The a uditors conclusions on compliance w ith law s
an d regulat ions and the requirements of FFMIA
___
___
___
___
___
___
5. The aud it t eam complied in a l l ma ter ia l respect s wi th the
a udit orga niza t ion s policies a nd procedures ___ ___
* I f any o f the above 5 st a tements have "no" responses , please descr ibe the
response in a memora ndum t o the reviewer.
Da te of completion of field w ork
Audit Ma na ger _____________________________________________ D a t e
Assis t a nt Direct or __________________________________________ D a t e
Audit D irector ____________________________________________