Local government agencies and quasi-public organizations (local auditees) provide annual financial reports to the Louisiana Legislative Auditor (LLA) (see What Kind of Report Does My Agency Need to Provide to the Legislative Auditor?).
Local auditees that receive $500,000 or more in revenues and other sources (local government agencies and some quasi-public organizations) or local and/or state assistance (nonprofits) annually must provide for audited financial statements. The majority of audits submitted to LLA are performed under generally accepted government auditing standards or GAGAS. GAGAS requires the CPA performing the audit to test the local auditee’s compliance with certain provisions of laws, regulations, contracts, and grant agreements; 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.
Louisiana Compliance Questionnaires (for governmental agencies, quasi-public agencies, and charter schools) are used by the CPA in local auditee audit engagements as one of the tools to determine the laws, regulations, contracts and grant agreements to test during the audit; and to obtain management’s representation as to whether they have complied with these laws and regulations. These questionnaires provide a list of Louisiana laws that are material to the financial statements of local auditees (material means it is important for local auditees to follow these laws and regulations). They provide spaces for the local auditee to check, indicating that the agency has or has not complied with each of the laws and regulations, or if it is not applicable to their agency; and a space for the agency to date and sign the questionnaire. 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 and/or state assistance) annually must provide for reviewed financial statements, and a report, prepared by the 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), which are similar to Louisiana Compliance Questionnaires, are available on LLA’s website for use in review/attestation engagements. 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 an open meeting. The local auditee then provides the questionnaire to their CPA at the start of the engagement. 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 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.