Spring 2013 issue of Horizons

PUBLIC SECTOR

How Recent Changes in Auditing Standards Will Impact Governmental Entities by Ted Williamson, CPA

I f you are responsible for the financial reporting of a governmental entity, you are probably aware that the Governmental Accounting Standards Board (GASB) recently issued a number of new accounting pronouncements that will result in significant changes to your financial statements. What you may not know is that the oversight bodies that establish auditing standards have also been very active, and the new pronouncements they have put forth will also impact you.

For the most part, auditing standards govern the way independent auditors do their jobs, including how they go about performing testwork and what documentation they are required to prepare and retain in their workpapers. Several recent revisions to auditing standards also have consequences for the auditee. These include changes to the language contained within the financial statement opinion, the engagement letter, and the management representation letter; increased interaction between your auditors

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