Routine And Non-Routine Engagements

The annual audit, review/attestation and compilation engagements of local government agencies and quasi-public organizations (local auditees) in Louisiana are provided for in the audit law (Louisiana Revised Statute (R.S.) 24:513 and 24:514). The majority of these engagements are performed by certified public accounting (CPA) firms that have been approved by the Louisiana Legislative Auditor (LLA); and are referred to as routine engagements. LLA has the authority under the audit law (R.S. 24:513 A. (6)) to approve routine engagements prior to commencement.

LLA also approves non-routine engagements for local auditees. A non-routine engagement is any engagement that

• Is performed in accordance with professional audit, attestation, or compilation and review standards.
• Results in a report, and
• Is not specifically provided for in the audit law (R.S. 24:513 and 24:514).

Examples of non-routine engagements include but are not limited to:

• Agreed-upon procedures engagements of a local auditee’s process of a specific type of transaction, such as travel expenditures. Most non-routine engagements that are submitted to LLA for approval are agreed-upon procedure engagements that are performed under the attestation standards.
• Examination engagements
• Audits of a specific account group or groups, such as a school board’s school activity funds
• Audits of information that is required by Governmental Accounting Standards Board Statement No. 68 to be included in the annual financial reports of local government agencies that participate in state and statewide retirement systems

Exceptions to the above include:

• Engagements to audit a college or university foundation, alumni association, or building corporation
• Engagements to audit the state central committee or parish executive committee of a recognized political party
• Engagements that are not performed under professional audit, attestation or compilation and review standards; e.g., management advisory services engagements that are performed under the AICPA's Statement on Standards for Consulting Services or Statement on Standards for Forensic Services. However, LLA asks CPAs to notify Local Government Services if they find fraud or abuse while performing these engagements.
• Compilation engagements that are performed under the AICPA's Statements on Standards for Accounting and Review Services to facilitate a local auditee’s statutorily required audit or review/attestation engagement; or to prepare a local auditee’s statutorily required sworn annual financial statements.
• Engagements that are regulatory in nature and are required by another entity outside of LLA, such as an agreed-upon procedures engagement required by another Louisiana state agency; an engagement to submit financial information for a housing authority to HUD-REAC, or a calculation of debt service coverage ratios to be included in a proposal for a loan or other debt.

Engagements that meet these exceptions do not need to be approved by LLA, and may be performed by a CPA firm that is not on LLA’s approved list.

Both routine and non-routine engagements are approved by LLA through the Engagement Approval Request form. See Submitting an Engagement Approval Request to the Legislative Auditor for more information on this process.