Preparing for the Audit Presented by Patty McClendon Senior Manager – KPMG LLP KPMG LLP
Dec 21, 2015
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May 2007 GAAP Reporting Workshop
Overview – Proper Care andFeeding of the Audit Process
Role of the auditor
Role of the campus
Planning and lots of communication
Campus preparedness – having all required items ready on first day of fieldwork!
Directly impacts the ability to stay “on track” with required audit timeline and CO submission deadlines
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May 2007 GAAP Reporting Workshop
The Role of the Independent Auditor
Provide PBC List (contained in Chapter 9) Financial statement audit
A-133 audit (higher and limited scope)
KPMG campus partners to communicate campus audit preparedness to Chancellor’s Office (CO) on first day of fieldwork
Planning meeting/entrance conference held
All PBC schedules provided
Completed and approved reporting package provided to KPMG campus team
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May 2007 GAAP Reporting Workshop
The Role of the Independent Auditor, continued
Communicate progress and any difficulties or issues encountered during the audit, including proposed management letter comments and single audit findings, to:
Campus management
CO via weekly CO meetings with campus partners
KPMG Systemwide Team via weekly progress reports
Meet deadlines set by CO, campus and audit team (refer to audit timeline for key dates)
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May 2007 GAAP Reporting Workshop
Understanding the Role of the Campus
To have all requested schedules, including the completed and approved reporting package, PRIOR to the first day of fieldwork (refer to Engagement Team Phone List for fieldwork start dates)
Provide suitable workspace, including phone and internet connections
Designate campus contacts for financial statement and A-133 audits
Meet deadlines set by CO, campus and audit team (refer to Audit Timeline for key dates)
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May 2007 GAAP Reporting Workshop
First Day of Fieldwork –Submission to KPMG Campus Team
All PBC schedules – to be provided in a separate set of PBC binders with indexing of all schedules (refer to Chapter 9)
Completed and approved reporting package
Campus analytical review (fluctuation analysis) by financial statement line item (part of reporting package)
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May 2007 GAAP Reporting Workshop
Key Deadlines – Submission to CO
Auxiliary organizations’ audited financial statements, including supplementary information schedules – September 28, 2007
Campus reporting package (includes financial statement and A-133 audits, including FISAP) – October 18, 2007
Campus analytical review (fluctuation analysis) by financial statement line item – October 18, 2007
A-133 findings – November 7, 2007
Campus draft stand-alone financial statements (including management approved MD&A) to KPMG for review – November 16, 2007
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May 2007 GAAP Reporting Workshop
Planning Meeting/Entrance Conference
Campus and KPMG team introductions
Current year activity and issues
Scope of audit
PBC list clarification
Confirmations
Key deadlines Auxiliary organizations
Reporting package
Management’s discussion and analysis
Stand-alone financial statements
Confirm fieldwork timing
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May 2007 GAAP Reporting Workshop
KPMG Information RiskManagement (IRM) Audit Team – Scope of Work
IT General Controls Review
ERP review Access controls
Configuration controls
Financial aid system controls at selected campuses (7 higher scope A-133 campuses)
Department of Education upload to campus Student Information System (PeopleSoft or Legacy)
Grade system – user access
Interface from grade system to financial aid system (if applicable)
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May 2007 GAAP Reporting Workshop
IRM Test Work – Key Dates
April 27, 2007 – Campus IT PBC list and questionnaires sent to campuses
May 11, 2007 – Campus PBC and questionnaires due to KPMG
May - July, 2007 – Campus IT general controls test work and specific business process controls test work
Entails some on-site campus visits (7 campuses plus the CO), while for the remaining campuses the work will be conducted via phone interviews and requested documents.
UNISYS Data Center review(June 4 – 6, 2007)
Project wrap up / Campus close out meetings(TBD ~ July)