GAQC Alert No. 150 

    Published August 23, 2010




    Dear Center Members

    Updated Circular A-133 Report Illustrations Issued to Reflect SAS 117

    Background
    How to Access the Circular A-133 Report Illustrations Updated for SAS No. 117
    How to Access Updated Yellow Book Report Illustrations
    Status of the HUD Guide Illustrative Report Illustrations
    Other Resources to Assist You in Implementing SAS No. 117
    Stay Informed

    The purpose of this GAQC Alert is to make you aware that the Governmental Audit Quality Center (GAQC) has posted updated Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations (Circular A-133) report illustrations that have been revised to reflect recently effective Statement on Auditing Standards (SAS) No. 117, Compliance Audits, (AICPA, Professional Standards, vol. 1, AU section 801). Click here to access a summary of SAS No. 117. After reading this GAQC Alert, you will understand:

    • The background as to why there is a need for updated Circular A-133 report illustrations;
    • How to access the latest Circular A-133 and Government Auditing Standards report illustrations;
    • The status of updates to the illustrative reports for U.S. Department of Housing and Urban Development (HUD) audits performed under the Consolidated Audit Guide for Audits of HUD Programs (HUD Guide); and
    • Other resources available to help you in implementing SAS No. 117, including the issuance of the 2010 edition of the AICPA Audit Guide, Government Auditing Standards and Circular A-133 Audits (GAS-A133 Guide).

    Background

     

    SAS No. 117 was issued in December 2009, and is effective for compliance audits for fiscal periods ending on or after June 15, 2010. It supersedes SAS No. 74, Compliance Auditing Considerations in Audits of Governmental Entities and Recipients of Governmental Financial Assistance, and is applicable when an auditor is engaged or required by law or regulation, to perform a compliance audit in accordance with all of the following:

    • Generally accepted auditing standards;
    • The standards for financial audits under Government Auditing Standards (also referred to as the Yellow Book);
    • A governmental audit requirement that requires an auditor to express an opinion on compliance (e.g., Circular A-133).

    SAS No. 117 applies to the compliance audit portion of your single audits. Among the requirements in SAS No. 117 are specific reporting elements for reporting on compliance and internal control over compliance. As a result, in order to comply with the SAS, updates were needed to the Circular A-133 report illustrations developed by the AICPA.


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    How
    to Access the
    Circular A-133 Report Illustrations Updated for SAS No. 117

     

    The updated Circular A-133 report illustrations are provided in the 2010 edition of the GAS-A133 Guide. See the "Other Resources to Assist You in Implementing SAS No. 117" section below for information on ordering a copy of this Guide.  These updated reports should be used for single audits of periods ending on or after June 15, 2010, unless you early adopted SAS No. 117 in which case you may use them for earlier periods. Please note that the 2010 versions of the Circular A-133 report illustrations also reflect updated definitions from SAS No. 115, Communicating Internal Control Related Matters Identified in an Audit. As a service to all AICPA members, we have made the updated Circular A-133 report illustrations from the 2010 edition of the GAS-A133 Guide available electronically on the Illustrative Auditor Reports page of the GAQC Web site

    Click here to access the illustrative Circular A-133 reports updated for SAS No. 117.

     

    Click here to access the illustrative program-specific audit reports updated for SAS No. 117.

     

    Note that in March 2010, the GAQC posted to the Illustrative Auditor Reports page of the GAQC Web site updated Circular A-133 report illustrations that reflected the requirements of SAS No. 115 (see GAQC Alert #140). These reports apply to single audits of year-ends of periods ending on or after December 15, 2009, and other year-ends between then and the effective date of SAS No. 117 (see above). Because we recognize that some members may still be reporting on periods prior to the effective date of SAS No. 117, the GAQC will continue to make the March 2010 versions of the Circular A-133 reports available.  

    Click here to access the illustrative Circular A-133 reports updated only for SAS No. 115.  

    Click here to access the illustrative program-specific audit reports updated only for SAS No. 115.


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    How to Access Updated Yellow Book Report Illustrations

    Although SAS No. 117 does not apply to the financial statement audit portion of the single audit, nor the related Government Auditing Standards reporting, the 2010 edition of the GAS-A133 Guide did make several minor edits to the Yellow Book report illustrations primarily in the report titles and footnotes.  As a service to all AICPA members, we have made the updated Government Auditing Standards report illustrations available electronically on the Illustrative Auditor Reports page of the GAQC Web site.

     

    Click here to access the latest illustrative Government Auditing Standards reports.


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    Status
    of the HUD Guide Illustrative Report Illustrations

     

    At this time, the illustrative reports on the HUD Web site for the reporting on compliance and internal control over compliance under the HUD Guide have not yet been updated for SAS No. 117. The GAQC will be contacting HUD and offering to assist HUD staff with updating its report illustrations. We will inform you as soon as we are aware that HUD has posted updated reports to the HUD Office of Inspector General Web site. We do not expect significant changes to the HUD illustrations as a result of SAS No. 117.  

     

    Other Resources to Assist You in Implementing SAS No. 117

     

    Member Event on SAS No. 117. The GAQC hosted a member event titled, The New Compliance Auditing SAS and an Update on Other AICPA Auditing Standards, which is available on the GAQC Web site by clicking here. This event discusses when SAS No. 117 applies and what it requires and will help provide perspective on how compliance audits might change under the new SAS. To access this archived conference member event, click here

    GAS-A133 Guide Updated for SAS No. 117. The GAS-A133 Guide presents guidance on the audits of financial statements conducted in accordance with Government Auditing Standards and recommendations for the conduct of audits performed in accordance with the Single Audit Act Amendments of 1996 and Circular A-133. The GAS-A133 Guide is updated on an annual basis and it has recently been updated for SAS No. 117. In addition to changes for SAS No. 117, the May 1, 2010, edition of the Guide includes:

    • Guidance on planning and performing audits under the July 2007 revision of Government Auditing Standards.
    • Compliance audit considerations related to Recovery Act awards at the end of every chapter with a reference regarding where additional guidance can be found.

    • A chapter on sampling in a single audit environment (originally incorporated into the 2009 edition of the Guide). See GAQC Alert #135.

    Appendix C of the GAS-A133 Guide identifies all of the changes that were made to the 2010 edition to incorporate recent changes in standards, requirements, and other guidance. 

    You can purchase a copy of the Guide online or call AICPA Member Services at 888-777-7077. The product number is 012748. The 2010 edition is currently available to those with subscription services and will be available in print on September 7, 2010.

     

    If you perform audits under either the Yellow Book or Circular A-133, this Guide is a key resource that should be in your library.

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    Sincerely,

    AICPA Governmental Audit Quality Center

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    Stay Informed


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