Audit, review/attestation, and compilation reports that are submitted to the Louisiana Legislative Auditor (LLA) include certain types of reports prepared by the certified public accountant (CPA) that performed the related engagement.
Audit reports include the independent auditor’s opinion. In this report, the CPA states whether he or she believes that the auditee’s financial statements present fairly, in all material respects, the financial position of the local auditee, in conformity with generally accepted accounting principles.
If the audit was performed in accordance the Government Auditing Standards (as are most audits submitted to LLA), there will be an additional report, the Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. If the local auditee spent $1,000,000 or more in federal funds, the audit report will include a third report, the Independent Auditor’s Report on Compliance for Each Major Program and On Internal Control Over Compliance Required by the Uniform Guidance.
Review reports include the independent accountant’s review report. In this report, the accountant states whether he or she is aware of any material modifications that need to be made to the local auditee’s financial statements in order for them to be fairly stated, in all material respects, in accordance with generally accepted accounting principles.
Most review reports that are submitted to LLA include an attestation report in which the accountant gives the results of his or her tests of the local auditee’s compliance with certain laws and regulations; based on representations given to the accountant by the local auditee in the Louisiana Attestation Questionnaire.
Compilation reports include the accountant’s compilation report. This report gives no assurance from the accountant as to whether the local auditee’s financial statements are in conformity with generally accepted accounting principles.
Auditors’ Opinions And Accountants’ Reports
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.