Different Types Of Audits That Public School Districts Undertake And Describe Each
1. List the different type of audits that public school districts undertake and describe each.
(a) External Audits in general reviews the resources and operations of the school district. This type of audit is to ensure that there is compliance with the policies and provides a credible evaluation of the resources and operations. It is conducted by external certified auditors. There are 3 subcategories of audits that falls under external audits. The first being a financial compliance audit. A Comprehensive annual financial Report must be prepared by the school district using the Generally Accepted Accounting Principles (GAAP) to review the finance. In this report the auditors will ensure that the data contained in the report was fair, accurate and reliable. The financial statements must be review by a qualified independent accountant. Another subcategory is the program compliance audit. This type of audit is done to ensure that the school is in compliance with the requirements for special programs such as federal grants. Performance Audits main objective is to assess the efficiency of how the local government runs aspects of its program. The aims to evaluate the performance of the program and examine the records for mismanagement, fraud and ways in which cost could be reduced.
(b) Internal audits aim at ensuring that the financial risk are identified and the appropriate internal controls are in place to address these risks. It ensures that public resources are…