Most of the audit engagements performed by certified public accountants (CPAs) for local auditees that report to the Louisiana Legislative Auditor (LLA) are required to be performed under generally accepted government auditing standards.
Audit reports are not the only types of reports that are submitted to LLA (see What Kind of Report Does My Agency Need to Provide to the Legislative Auditor?). The engagements for reports that are not audits are performed under different standards.
Review/attestation reports are submitted for those local auditees that receive between $200,000 and $499,999 in revenues and other sources. The review portion of these engagements is performed under Standards for Accounting and Review Services(opens in new tab) promulgated by the American Institute of Certified Public Accountants (AICPA); the attestation portion is performed under Standards for Attestation Engagements(opens in new tab) promulgated by the AICPA. Government Auditing Standards(opens in new tab) also apply to review/attestation engagements, and incorporate the AICPA standards by reference.
Compilation reports are submitted for those local auditees that receive between $75,001 and $199,999 in revenues and other sources. They are performed under Standards for Accounting and Review Services(opens in new tab) promulgated by the AICPA.
Some local auditees enter into engagements with CPAs to perform agreed-upon procedures engagements, in which the CPA performs tests that are agreed to by the auditee and the CPA. As stated previously, agreed-upon procedures engagements are performed under Standards for Attestation Engagements(opens in new tab) promulgated by the AICPA and Government Auditing Standards(opens in new tab).
Standards For Other Engagements
The Louisiana Governmental Audit Guide (LAGAG) is authorized by Louisiana Revised Statute 24:513 A. (5) (a) (i) to set forth the standards by which the engagements of local governments and quasi-public organizations (local auditees) are to be performed. The LAGAG is jointly produced by the Louisiana Legislative Auditor (LLA) and the Society of Louisiana Certified Public Accountants.
Although the LAGAG is intended to assist CPAs in performing their audits and other engagements for local auditees, it does not include a detailed analysis of the professional auditing and accounting standards a CPA must consider during his or her audit, review/attestation or compilation engagements; nor is it a substitute for professional judgment. CPAs must reach their own conclusions through research of all applicable auditing and accounting standards, in addition to the LAGAG, in the performance of their local auditee engagements.
In addition, although the LAGAG is intended to assist local auditees, it does not include all the legal and accounting information an agency needs to perform its operations; nor is it a substitute for professional, legal or accounting advice; or professional or personal judgment. Local auditees should use the information in the LAGAG, in conjunction with the guidance of the professionals most familiar with the particular facts and circumstances regarding their agency, in the performance of their operations.
For questions and comments about the LAGAG, please contact LLA at (225) 339-3800.