As a result of the issuance of SAS No. 117, Compliance Audits, the HUD Office of Inspector General (OIG) has issued updated illustrative auditor internal control and compliance reports in the Consolidated Audit Guide for Audits of HUD Programs (HUD Guide). The illustrations in the HUD Guide that are affected are Examples B; B-1; B-2; C. In addition, HUD issued an updated illustrative compliance report for nonmajor HUD program transactions (Example D) which was not impacted by SAS No. 117, but was revised to be consistent with wording used in the other updated report illustrations. Please note that these report illustrations also reflect the terminology and definitions from SAS No. 115, Communicating Internal Control matters Identified in an Audit, which was effective for audits of financial statements for periods on or after December 15, 2009 The March 2011 HUD transmittal provides a summary of the changes as well as the illustrative reports. The reports have been posted to the portion of the HUD Web site that includes the HUD Guide.
Note that HUD had previously released these illustrations in draft because SAS No. 117 had become effective and it anticipated the HUD internal clearance process would take some time. The final report illustrations issued by HUD contain only minor editorial changes to the draft reports that were previously provided by HUD and there were no substantive changes made.
The following updated HUD report illustrations are available:
Example B: Independent Auditor's Report On Internal Control (Combined Report Applicable To Internal Control Over Financial Reporting Based On An Audit Of Financial Statements And Internal Control Over Compliance For HUD-Assisted Programs—No Material Weaknesses, No Significant Deficiencies Identified)
Example B-2: Independent Auditor's Report On Internal Control (Combined Report Applicable To Internal Control Over Financial Reporting Based On An Audit Of Financial Statements And Internal Control Over Compliance For HUD-Assisted Programs— Material Weaknesses and Significant Deficiencies were Identified) Example C: Independent Auditor's Report On Compliance With Specific Program Requirements that Could Have a Direct and Material Effect on Each Major HUD-Assisted Program
Example D: Independent Auditor's Report On Compliance With Specific Requirements Applicable to Nonmajor HUD Program Transactions