July 2006
The APA bulletin informs you about developments in public auditing and their effect on the annual auditing
process.
It is that time of the year again. The Auditor
of Public Accounts’ 2007 work plan is APA auditors are often asked about the most
underway and many of you will begin common issues that they encounter in the
seeing both the familiar and unfamiliar faces field. Despite the diversity of the agencies
of our staff around your office. Take a deep we audit, we see some issues more often
breath; it is not as bad as you may think. than others; a lack of updated and
documented policies and procedures, and a
Contrary to the common perception, auditors lack of properly segregated duties. Before
are not evil, underhanded informants. An our arrival, review your agency’s policies
essential element of our work is to provide and procedures. Determine if they are
value-added insights that help improve your relevant and current to your agency’s
agency. Cooperation is the foundation on operations. Updated policies and procedures
which together we can build a successful can be a valuable tool for your employees
and meaningful audit. and aid in our understanding of the agency.
Periodically, we will post a bulletin on our While reviewing your agency’s policies and
website that will address frequently asked procedures, determine if your agency has
questions and issues that affect the audit properly segregated employees’
process. This bulletin’s topic…How to responsibilities. Review job descriptions
better prepare your agency for an audit. and capabilities. Do any employees have
the ability to conceal errors or irregularities
Your first step should be to prepare accurate, in the course of daily activities? If they do,
complete, and accessible records in advance there is an increased risk of your agency
of the audit. Shortly after the entrance being affected by future frauds and/or
conference, the APA will provide your undetected errors.
agency with a list of records that we will
need. Organization charts, system(s) access
charts, budget narrative summaries,
evidence of internal controls, charts of
accounts, journals, ledgers, vouchers, and
trial balances are just a sample of the
documents that the auditors may request.
Remember, the APA has access to all of the
documents that your agency submits to the Finally, remember that the audit process
Department of Accounts. The auditor’s affects everyone in your organization.
responsibility is to review your agency’s Explain to your staff that an audit is a
supporting documentation. routine examination of your agency and that
the auditors will ask questions in
These documents allow the auditors to gain relationship to that examination. Open
a better understanding of your agency, communication between your office and
which makes it easier to understand ours throughout the year is one of the best
circumstances that are special or unique to ways to be better prepared for an audit. Let
your agency. us be one of your most valuable resources.