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Legislative Auditing Standards

Audits conducted by the Legislative Audit Division will conform with the standards established by the American Institute of Certified Public Accountants (AICPA) and the U.S. Government Accountability Office (GAO) as applicable. In addition to these standards, all audits of entities receiving Federal Financial Assistance will be conducted in accordance with the standards established in the Single Audit Act Amendments of 1996 and in OMB Circular A-133, Audits of States and Local Governments, and Nonprofit Organizations unless other federal standards are permitted. The AICPA standards are expressed in the Statements on Auditing Standards, AICPA Professional Standards, and various Industry Audit Guides issued by the AICPA. The GAO standards are reflected in the Government Auditing Standards, more commonly known as the Yellowbook.

Independence Standard

In all matters relating to the audit work, the audit organization and the individual auditors, whether government or public, should be free from personal and external impairments to independence, should be organizationally independent, and should maintain an independent attitude and appearance.

The Montana Legislative Audit Committee is established by Montana's constitution. The Montana Legislative Auditor is responsible solely to the Montana Legislature through the Legislative Audit Committee.

Montana Law provides: All state agencies shall aid and assist the Legislative Auditor in the auditing of books, accounts, and records. The Legislative Auditor may examine at any time the books, accounts, and records, confidential or otherwise, of a state agency.

The Legislative Auditor has the authority to audit records of organizations and individuals receiving grants from or on behalf of the state to determine that the grants are administered in accordance with the grant terms and conditions. Whenever a state agency enters into an agreement to grant resources under its control to others, the agency shall obtain the written consent of the grantee to the audit provided for in this subsection.

The Legislative Auditor shall inform the Legislative Council and the Legislative Audit Committee in writing of an administrative policy or rule that may impair the independence of the division, along with a statement of the reasons for the opinion and suggested changes to cure the impairment. The Legislative Council shall review the rule in question and adopt a revision that is generally applicable to the Legislative Branch and that is designed to cure the impairment. While the impairment exists, the Legislative Audit Committee may adopt a specific exemption to the questioned rule that states the alternative rule to be employed under the exemption.


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Last Modified:
7/24/2008 3:16:47 PM