osa update
DESCRIPTION
OSA Update . Katie Thigpen, Financial Audit Supervisor Michael Spivey, IS Auditor NC Office of the State Auditor. Session Etiquette. Please turn off all cell phones. Please keep side conversations to a minimum. If you must leave during the presentation, please do so as quietly as possible. - PowerPoint PPT PresentationTRANSCRIPT
OSA Update
Katie Thigpen, Financial Audit SupervisorMichael Spivey, IS Auditor
NC Office of the State Auditor
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Session Etiquette
• Please turn off all cell phones.
• Please keep side conversations to a minimum.
• If you must leave during the presentation, please do so as quietly as possible.
• Thank you for your cooperation!
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Session Topics
Financial Audit Update
Information Systems Audit Update
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Financial Audit Update
Financial Audit Update - Topics• Summary of Financial Reporting for 2013• Preview of Financial Reporting for 2014• Audit Standards Update• Audit Plan for 2014• Internal Controls in a Financial Statement Audit• Preparing for a Financial Statement Audit
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Summary of Financial Reporting - 2013
• Findings/Issues Noted• Statement on Auditing Standard 115
Communicating Internal Control Related Matters Identified in an Audit
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Summary of Financial Reporting - 2013
• Findings/Issues Noted
No pervasive reportable findings.. No Wipe Out!
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Summary of Financial Reporting - 2013
Items of note from FY 2013
• Blending Disclosure (GASB 62)
• Disaggregation (GASB 68)
• MD&A (GASB 34)
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Preview of Financial Reporting - 2014
• Financial Reporting Standards Update (GASB)
– GASB 65 - Items Previously Reported as Assets and Liabilities
– GASB 66 - Technical Corrections—2012—an amendment of GASB Statements No. 10 and No. 62
– GASB 67 - Financial Reporting for Pension Plans—an amendment of GASB Statement No. 25
– GASB 70 - Accounting and Financial Reporting for Nonexchange Financial Guarantees
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GASBS 65
Items Previously Reported as Assets and Liabilities• Current or Advance Refundings of Debt• Government-Mandated Nonexchange
Transactions and Voluntary Nonexchange Transactions
• Debt Issuance Costs• Use of the term “Deferred”
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GASBS 66
Technical Corrections – 2012
• Amendment of GASB 10 and 62
No impact on University financial reporting
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GASBS 67
Financial Reporting for Pension Plans• Focuses on PLAN reporting• Replaces GASB 25 and GASB 50– 25 - Financial Reporting for Defined Benefit
Pension Plans and Note Disclosures for Defined Contribution Plans
– 50 - Pension Disclosures
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GASBS 70
Accounting and Financial Reporting for Nonexchange Financial Guarantees
• Objective
• Example
• Anticipated impact
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Highlights for Financial Reporting - 2014
• Pro Forma Update
• Changes to the FY14 Pro Forma
• GASB 68
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Auditing Standards Update - 2014
No impact on fiscal year 2014 audits
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Federal Compliance Audits - 2014
Federal Programs Selected For Audit
• Research and Development Cluster
• Student Financial Assistance Cluster
• Higher Education Grant
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Financial Related Audits
• Financial Related vs Financial Statement Audit
• Bridging the gap
• Risk assessment
• Ideas
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Internal Controls in a Financial Statement Audit
• What the standards say… (SAS 122)• Elements of Internal Control– Control Environment– Risk Assessment – Information System– Control Activities– Monitoring
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Preparing for the Audit
• Talk to the auditors– Before the audit– During the audit– After the audit
• Organize documentation• Analyze the statements for variances
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Information Systems Audit Update
• Summary of 2013 IS Audit Procedures• Why Should I Care About IT General Controls? • Plan for 2014 IS Audit Procedures & Beyond
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Summary of 2013 IS Audit Procedures
2013 – Fourth Year of Financial / IS Audit Partnership
Year three – formal communication of IS issues to CIO– NOT findings for the Financial Statement audit– Letters showing “Opportunities for Improvement”
Year four – informal communication of IS Issues– NOT findings for the Financial Statement audit– Followed up on prior year “Opportunities for Improvement”
Goal remained to help you avoid findings in an IT audit
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Summary of 2013 IS Audit Procedures
• General Observations from 2013 Work: – Follow-up on topics from 2012– Common issues in 2013
• UNC-GA Banner Hosting Services audit– IT audit released 12-19-13
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Why Should I Care About IT General Controls?
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Plan for 2014 IS Audit Procedures & Beyond
• Continue Partnership work with Financial Audit
• Leverage prior year work where possible• Reduction in scope for 2014• Goals: – Improve efficiency and reduce IS Audit
contribution to your audit bill– Future – Return of IT General Control audits
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Questions & Answers
Thank You!Katie Thigpen, Audit Supervisor
Office of the State [email protected]
Michael Spivey, Information Systems AuditorOffice of the State Auditor