The majority of audits submitted to the Louisiana Legislative Auditor (LLA) are performed under generally accepted government auditing standards or GAGAS. GAGAS requires the auditor to perform tests of the local auditee’s compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts, and to report upon the results of these tests in 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.
In order to perform these tests, the auditor must determine which laws, regulations, contracts, and grant agreements are material to the local auditee’s financial statements. Then, the auditor must obtain the representation or signed statement of the local auditee as to whether or not they complied with these laws, regulations, contracts and grant agreements.
Louisiana Compliance Questionnaires (for governmental agencies, quasi-public agencies, and charter schools) provide a list of Louisiana laws that are material to the financial statements of local auditees – in other words, it is important for local auditees to follow these laws and regulations. Different compliance questionnaires are available for local governments, quasi-public organizations, and charter schools.
Local auditees that receive between $200,000 and $499,999 of revenues and other sources (local government agencies) or local and/or state assistance (quasi-public organizations) annually must provide for reviewed financial statements, and a report, prepared by the certified public accounting (CPA) firm that performed the review, with the results of the CPA’s tests of laws and regulations that have been determined to be material to the local auditee’s financial statements. Louisiana Attestation Questionnaires (for governmental agencies, quasi-public agencies, and charter schools) are documents that are similar to Louisiana Compliance Questionnaires but are available for use in review/attestation engagements; along with illustrative agreed-upon procedures reports (for governmental agencies, quasi-public agencies, and charter schools). Like the Louisiana Compliance Questionnaires, there are also different attestation questionnaires for the review/attestation engagements of local governments, quasi-public organizations, and charter schools.
The local auditee prepares and signs the compliance or attestation questionnaire, and the local auditee board (if applicable) adopts it in open meeting. The local auditee then provides the questionnaire to their CPA. The CPA bases his or her tests of compliance on the local auditee’s responses on the questionnaire.
The CPA retains the compliance/attestation questionnaire with their audit/engagement documentation. It is not necessary for the local auditee or the CPA to provide the questionnaire to LLA.
Louisiana Compliance And Attestation Questionnaires
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.