The relationship between local governments and quasi-public organizations (local auditees) and the CPA firm that performs their audit, review/attestation or compilation engagement is usually cordial and professional. However, because local auditees and CPAs are human beings, there will sometimes be disagreements between them.
The following questions and answers address common conflicts between local auditees and their CPA firms, and the recommended resolution. Specific questions should be directed to the Louisiana Legislative Auditor’s (LLA’s) Local Government Services Engagement Manager.
- I have hired a CPA firm to perform my agency’s statutorily required audit. The CPA will not respond to my requests to start the audit. It is getting close to the due date of the report. What should I do?
- The CPA who is performing my agency’s audit is asking for a lot of information that I don’t think pertains to my financial statements. Must I give these items to him?
- The CPA who is performing my agency’s audit is asking for information that was not on the list of records he requested when I signed the engagement agreement. Shouldn’t the auditor have known what records he would need before the engagement started?
- The CPA is asking me to make adjustments to the financial statements that I don’t want to make. What will happen if I don’t make these adjustments?
- I don’t agree with a finding the CPA wants to include in my agency’s report. I want him to remove it. Will LLA back me up?
- The CPA who performed our agency’s audit said he will be rendering a disclaimer of opinion on our financial statements. I want him to change the opinion to a clean opinion. Will LLA back me up?
- I gave the CPA everything he has requested to complete the audit weeks ago, and he said the report is finished. However, the CPA has not submitted it to LLA. The due date of the report is next week. What should I do?
- We do not want to hire our agency’s prior year CPA firm to perform our next audit. We have not signed a contract with them for the current year. Do we need to notify LLA if we want to change auditors?
- I am a member of the board of a local government that reports to LLA. A misappropriation of funds occurred during the last fiscal year that was not caught by the auditor. I am sure that the auditor is not doing his job during the performance of his annual audit, and I want LLA to perform the audit. How may I request this?
- We do not want to hire our agency’s prior year CPA firm to perform our next audit. Because of a dispute over the fees, we have not paid them in full. Will it be a problem for us to hire a new CPA firm?
- We do not want to retain our prior year CPA firm to perform our agency’s next audit, but we have a contract with them for one more year. What do we do?
- We are happy with our CPA firm’s audit work, but not with the fees they charge. What is our recourse?