The Legislative Auditor’s policy regarding the confidentiality of audit/engagement documentation is as follows:
State ACFR Entities The audit/engagement documentation of a CPA performing an engagement of an entity that is included in the state of Louisiana’s Annual Comprehensive Financial Report (ACFR) is considered to be confidential by law (Louisiana Revised Statute (R.S.) 24:513 I.(opens in new tab) and 44:4 (6)(opens in new tab))
A CPA performing an ACFR engagement must contact and obtain the express permission of the Legislative Auditor prior to giving access to audit/engagement documentation. Audit/engagement documentation for ACFR entity engagements shall be released only upon receipt of a valid confidentiality agreement or a subpoena.
In accordance with state law and professional standards, the CPA may share audit/engagement documentation of an ACFR entity with any committee, individual, or organization of the Louisiana Board of Certified Public Accountants authorized to perform quality assurance engagement reviews, and any successor auditors, without prior approval of the Legislative Auditor.
Local Auditees It is the responsibility of a CPA performing a local government or quasi-public organization (local auditee) engagement to determine whether they will provide audit/engagement documentation to the client or any third party. The CPA may share audit engagement documentation with the client or any third party without prior approval of the Legislative Auditor with the exception of the documents noted in the paragraph below.
Allegations, misappropriations, and other information sent by the Legislative Auditor to a CPA performing a local auditee engagement, and the related audit/engagement documentation, are considered to be confidential by law (R.S. 24:513 I.(opens in new tab) and 44:4 (6)(opens in new tab)). The CPA must contact and obtain the express permission of the Legislative Auditor prior to giving access to such audit/engagement documentation. Such audit/engagement documentation shall be released only upon receipt of a valid confidentiality agreement or a subpoena.
In accordance with state law and professional standards, the CPA may share audit/engagement documentation with any committee, individual, or organization of the Louisiana Board of Certified Public Accountants authorized to perform quality assurance engagement reviews, and any successor auditors, without prior approval of the Legislative Auditor. Access to all audit/engagement documentation shall be made to the previously named individuals and organizations within two weeks of the request at no charge, exclusive of direct expenses of the access, such as reproduction costs or other granted privileges. Any deviation from this requirement shall be reported to the Legislative Auditor. When such deviations, in the judgment of the Legislative Auditor, serve to hinder the governmental audit process, the Legislative Auditor may, without liability, take possession of all audit/engagement documentation and make it available to the requesting individuals or organizations.
The Legislative Auditor may cancel existing engagement agreements and/or refuse to approve future engagement agreements of any CPA failing to follow the provisions of this section.
Audit/engagement documentation should be retained for a minimum of five years.
Legislative Auditor's Policy Regarding Confidentiality of Audit/Engagement Documentation
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.