If a contract manager is reading an audit report as part of the monitoring of the contract or contract closure process and the scope paragraph states there was a limitation in the scope of the audit, consideration should be given to whether this adversely affects the value of the audit to the agency's program. In addition, consideration should be given to whether the limitations in scope are an indication that the contractor is not able to, and did not, deliver the contracted client services. Contract managers may need to consider terminating the contract. If there was no limitation in the scope of the audit, the scope paragraph will generally state the name of the contractor, the time period audited, and that the audit was conducted in accordance with generally accepted auditing standards. This type of scope paragraph indicates the auditor was able to perform a complete audit according to generally accepted auditing standards.
Audit opinions are sometimes very complex.
These exact words may not be used, so it is advisable to seek advice from agency audit staff, or other knowledgeable personnel as to the type of audit opinion. Findings are written by the auditor to identify problems noted during the audit that require resolution. Generally, a finding is written when there is non-compliance with the contract terms or with federal or state laws or regulations or a material internal control weakness exists. Generally, the auditor will provide the contractor an opportunity to respond to the finding and include the contractor's response with the text of the finding when published. Recommendations are written by the auditor as part of a finding to give the contractor suggestions on how to resolve the finding and avoid future occurrences.