Effective for June 30, 2017 fiscal year-ends, auditors of local governments and quasi-public entities in Louisiana are required to perform an agreed upon procedures engagement as part of their audit in accordance with LA R.S. 24:513 (the audit law). The procedures are directed toward specific areas of government operations where fraud and abuse, noncompliance, or internal control deficiencies have been found to be at higher risk by the Legislative Auditor.
Such areas include credit card purchases, contracting, travel costs ethics law matters and others. The Louisiana Legislative Auditor (LLA) has prescribed these agreed-upon procedures (AUPs), which are intended to represent a minimum level of additional work to be performed. These procedures may be considered to be “complementary” rather than “additive”, depending on the extent to which previous audits considered these areas in development of the auditor’s opinion on the financial statements as required by generally accepted auditing standards.
How does this effect you and your entity?
Beginning with the year ended June 30, 2017, each local government and quasi public entity subject to the audit law will be required to engage it’s audit firm to perform the agreed upon procedures with respect to public funds. These procedures may increase the time and effort required to complete the audit and potentially its costs. Additionally, since the auditor’s scope is now enhanced, increased detection by the auditor of fraud, abuse, noncompliance and internal control matters could occur. Auditees may want to review the agreed-upon procedures closely when released, to address areas of operations and internal controls subject to the procedures.
Brad Cryer, Director of Local Government Services, Legislative Auditor's Office, will discuss the rationale and implementation issues relative to the new procedures.
Meet the Speaker: Bradley D. Cryer, CPA
Bradley Cryer is the Director of Local Government Services with the Louisiana Legislative Auditor’s (LLA) Office. He has more than 21 years of experience with the LLA and is responsible for local government and advisory services.
Brad’s past experience includes financial and federal program audits at numerous state agencies, universities, boards, and commissions, as well as coordinating the LLA’s information technology audits. He also spent several years as the assistant director responsible for the audit of the state of Louisiana’s Comprehensive Annual Financial Report. More recently, Brad was involved with the implementation of the GASB pension standards for the State of Louisiana.
Brad is a Certified Public Accountant, a member of the American Institute of Certified Public Accountants, and a member of the Society of Louisiana Certified Public Accountants. He earned a Bachelor of Science degree in Accounting from Louisiana Tech University in 1996.