Actions in Response to the National Single Audit Sampling Project ...

Audit Objectives (10)
• Obtain sufficient appropriate evidence
• Form opinion at level required by GAR
• Identify audit reporting requirements
specified in GAR that are supplementary
to GAGAS.
Audit Procedures
• Risk assessment procedures, tests of controls,
and analytical procedures alone are not
sufficient to address a risk of material noncompliance
(19)
• The use of analytical procedures to gather
substantive evidence is generally less effective
in a compliance audit than a financial statement
audit (A23)
• References A-133 requirement to test I/C even if
such testing would be inefficient (A25)
Documentation
• Risk assessment procedures (39 & A38)
• Procedures performed to test I/C &
compliance (40)
• Materiality levels and how determined (41)
• How complied with GAR (42)
Management Representations (23)
• Required by standard
• Elements specifically enumerated
Material Noncompliance
• Failure to follow or violation of compliance
requirements that results in noncompliance
that is:
– Quantitatively or qualitatively material
– Either individually or when aggregated with
other non-compliance
Audit Findings
• Materiality evaluation (29)
– Known questioned costs
– Likely questioned costs
– Other material noncompliance that by its
nature may not result in questioned costs
• Likely QC defined (11)
– Developed by extrapolating from audit
evidence, e.g., projecting known QC to
population.
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