Distribution of a(N) ____________ Report Is Limited Review Examination Agreed-upon Procedures Audit

DISCLAIMER
The Louisiana Governmental Audit Guide (LAGAG) is authorized by Louisiana Revised Statute 24:513 A. (5) (a) (i) to set up forth the standards by which the engagements of local governments and quasi-public organizations (local auditees) are to be performed. The LAGAG is jointly produced past the Louisiana Legislative Auditor (LLA) and the Society of Louisiana Certified Public Accountants.

Although the LAGAG is intended to assistance 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 inspect, review/testament or compilation engagements; nor is it a substitute for professional judgment. CPAs must reach their own conclusions through enquiry of all applicable auditing and accounting standards, in add-on to the LAGAG, in the functioning of their local auditee engagements.

In add-on, although the LAGAG is intended to aid local auditees, it does not include all of the legal and bookkeeping data an agency needs to perform its operations; nor is it a substitute for professional person, legal or accounting advice; or professional or personal judgment. 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.

For questions and comments about the LAGAG, delight contact LLA at (225) 339-3800.

The audit, review/attestation, and compilation reports that

local auditees are required to submit to the Louisiana Legislative Auditor (LLA) past the audit law (Louisiana Revised Statute 24:513) provide a great deal of data to local auditees and the users of their fiscal statements.

However, an audit, review/attestation, or compilation report may non run across the needs of all users of local auditee reports, who may require additional information and assurances on internal control, compliance with laws and regulations, or other matters.

The local auditee may hire a certified public bookkeeping (CPA) firm to perform additional tests of controls and compliance or other matters to supplement the financial argument audit's or other date'due south coverage of these areas; in order to meet the local auditee's needs, or the needs of other written report users.

These additional needs are often met by the following:

· An agreed-upon procedures engagement
· An examination appointment

An agreed-upon procedures appointment is performed by a CPA firm in accordance with Standards for Attestation Engagements promulgated by the American Institute of Certified Public Accountants. As the name suggests, this type of engagement consists of a CPA performing procedures that are agreed to by the local auditee and the CPA firm. The list of procedures to exist performed is included in the date understanding that is signed by the local auditee and the CPA firm. After the engagement is completed, the CPA prepares a study on the results of the procedures performed, and any exceptions noted.

An test engagement is too performed past a CPA in accordance with Standards for Attestation Engagements. In an test engagement, the CPA obtains reasonable assurance about whether the discipline thing of the date, equally measured or evaluated against the criteria, is free from material misstatement; and expresses an opinion nigh whether the subject thing is in accordance with, or based on, the criteria; or whether management's exclamation is fairly stated, in all material respects.

Mutual subjects of agreed-upon procedures and test engagements are the test of specific types of expenditures, such as travel and credit card expenditures; or certain types of accounts, such equally school activity funds. These engagements may too be performed on the contents of a specific report or argument, such as a tax collector's statement of taxes assessed and settlements made to parish taxing authorities.

Most agreed-upon procedures and examination engagements (except for

statewide agreed-upon procedures engagements ) are classified every bit not-routine engagements . Not-routine agreed-upon procedures and test engagements are approved by LLA through the Engagement Blessing Request course. Come across Submitting an Engagement Approval Request to the Legislative Auditor for more data on this procedure.

QUESTIONS:

Q. How do agreed-upon procedures and examination engagements differ from audit engagements?
A. The principal difference between an audit appointment, and an agreed-upon procedures or test date is the type of standards nether which the engagements are performed. Audits are performed nether auditing standards promulgated by the AICPA; agreed-upon procedures and examination engagements are performed under attestation standards promulgated past the AICPA.

Q. The comptroller for a local auditee would like to appoint our CPA firm to perform an agreed-upon procedures date to test 100% of their expenditures. Is this advisable?
A. If fraud is suspected, an engagement to test 100% of expenditures may be in guild. Absent a suspicion of fraud, such an engagement may cost a local auditee far more than the value of whatever knowledge that would be gained. Information technology would toll less money, and would almost likely be equally effective, for the local auditee to identify the specific areas of concern – such equally whether documentation for travel or credit card reimbursements is acceptable – and hire your house to perform an agreed-upon procedures engagement regarding these transactions.

Q. Must an agreed-upon procedures date or test date be performed past the CPA firm that performed the audit?
A. An agreed-upon procedures date or exam engagement needs to be performed by a CPA firm on LLA'south canonical list, but does not need to be performed by the aforementioned CPA that performed the local auditee's audit, review/testament, or compilation engagement. The exception is the

statewide agreed-upon procedures engagement LLA requires of all local auditees that are required by the audit police to provide an inspect report to LLA.

NB: This document is the electric current version as of 09/20/2021 .

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Source: https://www.lla.la.gov/lagag.nsf/c3ac04275ccf4bcc862581d10064fd2f/1676194667afcce1862580d4005f1a42?OpenDocument