A prior post addressed RUS’ amendment of its audit requirements. RUS publishes final rule on audit requirements – Cook & Associates (and comments requested here: RUS Seeks Comment on Audit Rules – Cook & Associates). The RUS again amended it regulations to conform to standards of the Generally Accepted Government Auditing Standards (GAGAS) and AICPA. This amendment seeks to “remove an unnecessary report, update terminology, clarify Agency contacts and filing requirements, and update or remove any outdated references.”
An audit is defined as “an examination of financial statements by an independent auditor or audit firm for the purpose of expressing an opinion on the fairness with which the financial statements present the financial position, results of operations, and changes in cash flows in accordance with U.S. generally accepted accounting principles (GAAP) and for determining whether the auditee has complied with provisions of laws, regulations, contracts, or grant agreements that could have a material effect on the financial statements.” Note the addition of “or audit firm” in the definition.
The amendment also adds GASB to the definition of “regulatory liability” to clarify the standards authorizing the “enforceable present obligation to deduct an amount . . . in future periods . . . .”
The amendment modifies the requirements and persons to be notified if the auditor discovers a violation of law or contract, or fraud or illegal acts.
