what do we know about auditors? scary / intimidating boring great with numbers government agency
TRANSCRIPT
WHAT DO WE KNOW ABOUT AUDITORS?
• Scary / Intimidating
• Boring
• Great with Numbers
• Government Agency
WHY DO WE NEED AN AUDIT?
• Foreign School Audit Guide - September 2002
• Amendment to the guide - August 2003
• Amendment to the guide - August 2005
FOUR SECTIONS TO THE AUDIT GUIDE
• General Requirements
• Financial Audit
• Standard Compliance Engagement
• Alternate Compliance Engagement
FINANCIAL AUDIT REQUIREMENTS
• < US$500,000: No Financial Audit required
• US$500,000 – US$3,000,000: home country GAAP annually
• US$3,000,000 – US$10,000,000: home country GAAP
annually with U.S. GAAP every 3 years
• > US$10,000,000: U.S. GAAP annually
COMPLIANCE AUDIT REQUIREMENTS
• if > US$500,000 Certified must perform a Standard
Compliance Engagement
• if < US$500,000 Certified must perform an Alternate
Compliance Engagement
STANDARD COMPLIANCE ENGAGEMENT
• Management Assertions• Internal Control Over Compliance• Follow-up on Prior Audit Findings• School Eligibility• Student Status Confirmation Reporting• Student Eligibility• Processing Loans• Counselling• Return of Title IV Funds• Administrative capability
ALTERNATE COMPLIANCE ENGAGEMENT
• Management Assertions
• Enrolment and attendance
• Loan amounts
• Return of Title IV Funds
• Administrative capability
FINAL REPORTING PACKAGES
• Compliance with the Specified Requirements
• Report on Internal Control Over Compliance
• Schedule of Findings and Questioned Costs
• Comments on the Resolution of Prior Audit Findings
• Report and comment on Final Audit Determination letter
CORRECTIVE ACTION PLAN
• Comments on Findings and Recommendations
• Actions Taken or Planned
• Status of Corrective Actions on Prior Findings
MOVING BETWEEN ENGAGEMENTS
• New Management Representation Letter
• Prior Year Findings must be reviewed
• Different testing and information required
• Different audit under Australian Auditing Standards
COMMON AUDIT FINDINGS
• 2013 Year findings – Standard/Alternate
• Final Audit Determination Letters
• Single Point of Failure
COMMON AUDIT FINDINGS
COMMON AUDIT FINDINGS
• SSCR – Timeliness:
• Documented Policies
• SSCR Batch Dates
• Loan Processing:
• Student Bank Details – Pro-Active
• Good Communication with processing Department
COMMON AUDIT FINDINGS
Alternate Engagement
COMMON AUDIT FINDINGS
• SSCR – Accuracy
• NSLDS Reporting Guide – Appendix C ‘Enrollment Status
Codes’
FINAL AUDIT DETERMINATION LETTERS
• Deficient = Final Audit Determination Letter
• Non-Deficient = NO Final Audit Determination Letter
• Satisfactory Corrective Action Plan (CAP)
SINGLE POINT OF FAILURE
• Establish review policies
• Shared knowledge of the program
• Adequate Training
AUSTRALIAN AUDITING STANDARDS
• ASAE 3100 “Compliance Engagements”
• ASRS 4400 “Agreed-upon Assurance Procedures to Report
Factual Findings"
RISK BASED AUDITS…
Planning, planning, planning!
“If I had 6 hours to chop down a tree, I’d spend the first four
hours sharpening the axe”
Abraham Lincoln
WHAT ARE THE REQUIREMENTS?
• Planning, including an overall risk assessment
• Gain an understanding of the entity
• Consider materiality and engagement risk
• Obtain sufficient and appropriate audit evidence
• Obtain written representations from management
• Communicate deficiencies in internal control
• Communicate breaches to the legislation
• Compliance Report or Report on Factual Findings
THANKS FOR YOUR ATTENTION!
From the team at