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OSA Update

OSA Update . Katie Thigpen, Financial Audit Supervisor Michael Spivey, IS Auditor NC Office of the State Auditor. Session Etiquette. Please turn off all cell phones. Please keep side conversations to a minimum. If you must leave during the presentation, please do so as quietly as possible.

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OSA Update

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  1. OSA Update Katie Thigpen, Financial Audit Supervisor Michael Spivey, IS Auditor NC Office of the State Auditor

  2. Session Etiquette • Please turn off all cell phones. • Please keep side conversations to a minimum. • If you must leave during the presentation, please do so as quietly as possible. • Thank you for your cooperation!

  3. Session Topics Financial Audit Update Information Systems Audit Update

  4. Financial Audit Update Financial Audit Update - Topics • Summary of Financial Reporting for 2013 • Preview of Financial Reporting for 2014 • Audit Standards Update • Audit Plan for 2014 • Internal Controls in a Financial Statement Audit • Preparing for a Financial Statement Audit

  5. Summary of Financial Reporting - 2013 • Findings/Issues Noted • Statement on Auditing Standard 115 Communicating Internal Control Related Matters Identified in an Audit

  6. Summary of Financial Reporting - 2013 • Findings/Issues Noted No pervasive reportable findings.. No Wipe Out!

  7. Summary of Financial Reporting - 2013 Items of note from FY 2013 • Blending Disclosure (GASB 62) • Disaggregation (GASB 68) • MD&A (GASB 34)

  8. Preview of Financial Reporting - 2014 • Financial Reporting Standards Update (GASB) • GASB 65 - Items Previously Reported as Assets and Liabilities • GASB 66 - Technical Corrections—2012—an amendment of GASB Statements No. 10 and No. 62 • GASB 67 - Financial Reporting for Pension Plans—an amendment of GASB Statement No. 25 • GASB 70 - Accounting and Financial Reporting for Nonexchange Financial Guarantees

  9. GASBS 65 Items Previously Reported as Assets and Liabilities • Current or Advance Refundings of Debt • Government-Mandated Nonexchange Transactions and Voluntary Nonexchange Transactions • Debt Issuance Costs • Use of the term “Deferred”

  10. GASBS 66 Technical Corrections – 2012 • Amendment of GASB 10 and 62 No impact on University financial reporting

  11. GASBS 67 Financial Reporting for Pension Plans • Focuses on PLAN reporting • Replaces GASB 25 and GASB 50 • 25 - Financial Reporting for Defined Benefit Pension Plans and Note Disclosures for Defined Contribution Plans • 50 - Pension Disclosures

  12. GASBS 70 Accounting and Financial Reporting for Nonexchange Financial Guarantees • Objective • Example • Anticipated impact

  13. Highlights for Financial Reporting - 2014 • Pro Forma Update • Changes to the FY14 Pro Forma • GASB 68

  14. Auditing Standards Update - 2014 No impact on fiscal year 2014 audits

  15. Federal Compliance Audits - 2014 Federal Programs Selected For Audit • Research and Development Cluster • Student Financial Assistance Cluster • Higher Education Grant

  16. Financial Related Audits • Financial Related vs Financial Statement Audit • Bridging the gap • Risk assessment • Ideas

  17. Internal Controls in a Financial Statement Audit • What the standards say… (SAS 122) • Elements of Internal Control • Control Environment • Risk Assessment • Information System • Control Activities • Monitoring

  18. Preparing for the Audit • Talk to the auditors • Before the audit • During the audit • After the audit • Organize documentation • Analyze the statements for variances

  19. Information Systems Audit Update • Summary of 2013 IS Audit Procedures • Why Should I Care About IT General Controls? • Plan for 2014 IS Audit Procedures & Beyond

  20. Summary of 2013 IS Audit Procedures 2013 – Fourth Year of Financial / IS Audit Partnership Year three – formal communication of IS issues to CIO • NOT findings for the Financial Statement audit • Letters showing “Opportunities for Improvement” Year four – informal communication of IS Issues • NOT findings for the Financial Statement audit • Followed up on prior year “Opportunities for Improvement” Goal remained to help you avoid findings in an IT audit

  21. Summary of 2013 IS Audit Procedures • General Observations from 2013 Work: • Follow-up on topics from 2012 • Common issues in 2013 • UNC-GA Banner Hosting Services audit • IT audit released 12-19-13

  22. Why Should I Care About IT General Controls?

  23. Plan for 2014 IS Audit Procedures & Beyond • Continue Partnership work with Financial Audit • Leverage prior year work where possible • Reduction in scope for 2014 • Goals: • Improve efficiency and reduce IS Audit contribution to your audit bill • Future – Return of IT General Control audits

  24. Questions & Answers

  25. Thank You! Katie Thigpen, Audit Supervisor Office of the State Auditor katie_thigpen@ncauditor.net Michael Spivey, Information Systems Auditor Office of the State Auditor michael_spivey@ncauditor.net

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