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Financial-Compliance Audits

Financial-compliance audits encompass: (a) the traditional CPA financial audit, (b) compliance audit, and (c) limited performance/economy/efficiency audit. The primary objectives of financial/compliance audits are to ascertain that:

  1. Activities are in accordance with the requirements of applicable laws and regulations and are only for the furtherance of authorized programs.
  2. The agency accounts properly for all financial activity arising from its activities.
  3. The assets belonging to an agency or in its custody are adequately safeguarded, controlled, and used in an efficient manner.
  4. Reports and financial information provided by the agency to the Governor, the legislature, and central control agencies disclose fully the nature and scope of the activities conducted, and provide a proper basis for evaluating the agency's operations.
  5. Make recommendations to improve internal control, compliance, management and/or efficiency and economy of government operations.
  6. Determine the status of implementation of prior audit recommendations. Each audit's objectives may not include all those described here. Financial-compliance audits also identify and report instances and areas where agency economy and efficiency of operations or programs can be improved. Areas of concern identified in financial-compliance audits may be followed up by performance audit staff in conjunction with financial-compliance audits.

Single Audit

The Legislative Audit Division issues a statewide biennial single audit report as a special purpose financial-compliance audit which complies with the reporting requirements of the Single Audit Act and OMB Circular A-133. The Single Audit Report is based on work performed on agency financial-compliance audits and the audit of Montana's General Purpose Financial Statement.

 


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Last Modified:
7/24/2008 3:06:33 PM