Illustrative Auditor’s Reports

·         AICPA Audit Guide, Government Auditing Standards and Circular A-133 Audits

·         Reports Under Government Auditing Standards

o    Government Auditing Standards Report Illustrations - SAS No. 115 Terminology

o    Government Auditing Standards Report Illustrations - SAS No. 112 Terminology

·         Reports Under OMB Circular A-133 - SAS No. 112 Terminology

·         U.S Department of Housing and Urban Development

o    Internal Control Illustrative Auditor's Reports with Updated SAS No. 115 Terminology

o    Illustrative HUD Auditor Report for Separate SAS No. 29 Reporting on a Public Housing Agency (PHA) Financial Data Schedule (FDS)

 AICPA Audit Guide, Government Auditing Standards and Circular A-133 Audits

The AICPA Audit Guide, Government Auditing Standards and Circular A-133 Audits (Guide) presents guidance on the audits of financial statements conducted in accordance with Government Auditing Standards (also referred to as the Yellow Book). It also includes recommendations for the conduct of audits performed in accordance with the Single Audit Act Amendments of 1996 (the Single Audit Act) and Office of Management and Budget (OMB) Circular A–133, Audits of States, Local Governments, and Non-Profit Organizations (Circular A-133). If you perform audits under either the Yellow Book or Circular A-133, this guide is a key resource that should be in your library.  The Guide also includes examples of the various reports that are issued to comply with Government Auditing Standards and Circular A-133.  Many of the report examples included on this Web site for your convenience are excerpts from the Guide (as noted with *).

You should also be aware that the Guide is updated on an annual basis.  The AICPA last updated the Guide for conforming changes as of October 1, 2009. The 2009 edition incorporates audit guidance issued through that date and includes:

·         Guidance on planning and performing audits under the July 2007 revision of Government Auditing Standards

·         Conforming changes for Statements on Auditing Standards (SAS) issued through SAS No. 116, Interim Financial Information (AICPA, ProfessionalStandards, vol. 1, AU sec. 722)

·         A new chapter on sampling in a single audit environment.  See GAQC Alert #135.

·         New illustrative auditor tools relating to the Schedule of Expenditures of Federal Awards (click here to learn more). 

Appendix C of the Guide identifies the changes that were made to the 2009 edition of the Guide to incorporate recent changes in standards, requirements, and other guidance. You can purchase a copy of the Guide online or call AICPA Member Services at (888) 777–7077 (product number is 012748).

Illustrative Auditor’s Reports Under Government Auditing Standards*

Government Auditing Standards Report Illustrations - SAS No. 115 Terminology – This link contains examples of the reports issued under GAAS and Government Auditing Standards in various circumstances.  These reports have been updated for Statement on Auditing Standards (SAS) No. 115, Communicating Internal Control Related Matters Identified in an Audit.  The updated illustrations also appear in the 2009 edition of the AICPA Audit Guide, Government Auditing Standards and Circular A-133 Audit Guide as Appendix B to Chapter 4.  Click here for information on how to order this Guide. Note that these reports should be used by auditors that have implemented SAS No. 115.  (Note that GAO issued interim guidance making it permissible for auditors to implement SAS No. 115 on their financial statement audits performed under Government Auditing Standards. The guidance can be accessed on the Yellow Book page of the GAO Web site by clicking here. The GAO guidance became effective concurrent with the auditors’ implementation of SAS No. 115).  Learn More>>

Government Auditing Standards Report Illustrations - SAS No. 112 Terminology - SAS No. 115 is effective for audits of financial statements for periods on or after December 15, 2009. The report examples under this link reflect the requirements of SAS No. 112 (which carries the same title as SAS No. 115) and should only be used by auditors that are auditing periods prior to the effective date of SAS No. 115 that did not early implement SAS No. 115.  If you have implemented SAS No. 115, you should use the report illustrations in the above section.   Learn More >>

Illustrative Auditor’s Reports Under Circular A-133*

Illustrative Auditor's Reports Under Circular A-133 – This link contains examples of the report on compliance with requirements applicable to each major program and on internal control over compliance issued under OMB Circular A–133 in various circumstances. Note that these reports comply with the requirements of SAS No. 112.  The GAQC staff has been working with OMB and other federal agency representatives on updating the audit reporting for audits performed under Circular A-133, to reflect the new SAS No. 115 requirements. Additionally, we have been working with the AICPA auditing standards team to make needed updates to a related auditing interpretation of SAS No. 115 titled, Communicating Deficiencies in Internal Control Over Compliance in an Office of Management and Budget (OMB) Circular A-133 Audit (AICPA, Professional Standards, vol. 1, AU section 9325.01 - .04).  The plan is for OMB to post a notice on the OMB Web site indicating its intent for SAS No. 115 to be adopted in single audit reports.  At the same time, the revised auditing interpretation will be issued and GAQC will post the updated report illustrations on the “Illustrative Auditor’s Reports” page of the GAQC Web site.  We will inform you via a GAQC Alert as soon as the new reports are approved and released.  Learn More>>

U.S. Department of Housing and Urban Development (HUD)

HUD Internal Control Illustrative Auditor's Reports with Updated SAS No. 115 Terminology

HUD issued an update to its Consolidated Audit Guide for Audits of HUD Programs (HUD Guide) to provide users with illustrative internal control reports that have been updated for the effects of SAS No. 115, which is effective for audits of financial statements for periods on or after December 15, 2009  The reports were developed by the GAQC, cleared by the AICPA auditing standards team, and ultimately issued in final form by HUD.  The reports have been posted to the portion of the HUD Office of Inspector General Web site that includes the HUD Guide. Click here to access the HUD transmittal relating to the issuance of the illustrations. The following updated HUD report illustrations are available:

Example B: Independent Auditor's Report On Internal Control (Combined Report Applicable To Internal Control Over Financial Reporting Based On An Audit Of Financial Statements And Internal Control Over Compliance For HUD-Assisted Programs—No Material Weaknesses, No Significant Deficiencies Identified)

Example B-1: Independent Auditor's Report On Internal Control (Combined Report Applicable To Internal Control Over Financial Reporting Based On An Audit Of Financial Statements And Internal Control Over Compliance For HUD-Assisted Programs—Significant Deficiencies were Identified, No Material Weaknesses Identified

Example B-2: Independent Auditor's Report On Internal Control (Combined Report Applicable To Internal Control Over Financial Reporting Based On An Audit Of Financial Statements And Internal Control Over Compliance For HUD-Assisted Programs—Material Weaknesses and Significant Deficiencies were Identified)

Illustrative HUD Auditor Report for Separate SAS No. 29 Reporting on a Public Housing Agency (PHA) Financial Data Schedule (FDS)

During January 2009, HUD issued a follow-up Notice (to a related December Notice) for Public Housing Agencies (PHA) on its Web site titled, Un-Audited Financial Submission Procedure for Public Housing Agencies With Fiscal Year Ends of June 30, 2008 Through March 31, 2009. The Notice announced the availability of the previously promised Excel tool version of the updated financial data schedule (the FDS tool) and instructions for submitting it.  GAQC Alert #104 further describes the most recent HUD guidance, as well as several considerations for auditors that are issuing the SAS No. 29, Reporting on Information Accompanying the Basic Financial Statements in Auditor-Submitted Documents (AICPA, Professional Standards, vol. 1, AU section 551), “in relation to” reporting (SAS 29 opinion) on the FDS. This GAQC Alert also includes information on auditor subsequent event considerations and separate SAS No. 29 reporting on the FDS.  See GAQC Alert #104 for more information.  See also GAQC Alert #96 for additional background information.

Click here to view an illustrative report that can be used to report separately on the FDS for situations where the audit of a PHA’s financial statements has already been issued.