General Requirements (GR) [Note: Unfavorable (“No”) answers to GR-1 through GR-6 are indications of potential high risk areas related to the audit under review and should be fully explained in the notes section]. Question Criteria Yes No N/A W/P Ref. Auditor Qualifications GR-1 Did those responsible for planning, directing, performing audit procedures, and reporting on the audit meet the GAGAS continuing professional education requirements? GAS Independence GR-2 Was the audit documentation free of indications that the auditor was not independent? GAS AU-C 200.15 GR-3 Did the audit documentation include support that the auditor applied the GAGAS conceptual framework at the audit organization, audit, and individual auditor level including: GAS 3.59; AU-C 200.15 GR-3a Identifying threats to independence? GAS 3.08(a), 3.36, GR-3b Evaluating the significance of any threats, individually and in the aggregate? GAS 3.08(b) GR-3c Applying safeguards as necessary to eliminate the threats or reduce them to an acceptable level? GAS 3.08(c), 3.28-3.31 Professional Judgment/Due Professional Care GR-4 Did the audit documentation support that the auditor used professional judgment in planning and performing the audit and in reporting the results? [Note: Reviewers should answer this question within the context of the scope of their review and based on the results of the QCR.] GAS AU-C GR-5 If there were scope limitations identified in the audit documentation, did the auditor properly disclose all limitations, restrictions, or impairments in the auditor's report? GAS 2.24; AU-C 705.07, .11-.28; AU-C 935.34 Question Criteria Yes No N/A W/P Ref. Quality Control
GR-15a Appropriately considered whether to accept or continue a group audit engagement based on whether the group auditor will be able to obtain sufficient appropriate audit evidence through the group auditor’s work or the use of the work of component auditors? AU-C GR-15b Established and approved an overall group audit strategy and group audit plan including an assessment of the extent to which the components auditors’ work would be used and whether the report would make reference to the component auditor's work? AU-C GR-15c Gained a sufficient understanding of the group, the components, and environment? AU-C GR-15d Gained sufficient understanding of the component auditor(s) to determine (1) whether the component auditor(s) understands and will comply with the ethical requirements that are relevant to the group audit and is independent, (2) a component auditor’s professional competence, (3) the extent, if any, to which the group auditor will be able to be involved in the work of the component auditor, (4) whether the group auditor will be able to obtain information from the component auditor(s), and (5) whether a component auditor(s) operates in a regulatory environment that actively oversees auditors? AU-C GR-15e Made appropriate materiality considerations? AU-C 600.32 GR-15f Designed and implemented appropriate responses to address the assessed risks of material misstatement and performed further audit procedures as required for the consolidation process? AU-C
RS-8 Based on the audit work performed, did the Financial Statement Findings Section and the Federal Award Findings and Questioned Costs Section of the Schedule of Findings and Questioned Costs include: 2 CFR 200.515 (d)(2-3); GAS 4.23-.27 RS-8a Significant deficiencies and material weaknesses in internal control over financial reporting? GAS 4.23-.24 RS-8b Instances of fraud and noncompliance with provisions of laws or regulations that have a material effect on the audit and any other instances that warrant the attention of those charged with governance? GAS 4.23, .25(a) RS-8c Noncompliance with provisions of contracts or grant agreements that has a material effect on the audit? GAS 4.23, .25(b) RS-8d Abuse that has a material effect on the audit? GAS 4.23, .25(c) RS-8e Significant deficiencies and material weaknesses in internal control over major programs and significant instances of abuse relating to major programs? 2 CFR 200.516(a)(1) RS-8f Material noncompliance with the provisions of Federal statutes, regulations, or the terms and conditions of Federal awards related to a major program? 2 CFR 200.516(a)(2) RS-8g Known or likely questioned costs that are greater than $25,000 for a type of compliance requirement for a major program? 2 CFR 200.516(a)(3) RS-8h Known questioned costs that are greater than $25,000 for a Federal program which is not audited as a major program? 2 CFR 200.516(a)(4) RS-8i The circumstances concerning why the auditor's report on compliance for each major program is other than an unmodified opinion, unless such circumstances are otherwise reported as an audit finding(s)? 2 CFR 200.516(a)(5) RS-8j Known or likely fraud affecting a Federal award, unless such fraud is otherwise reported as an audit finding(s)? 2 CFR 200.516(a)(6)
An assessment of control risk at maximum and a consideration of whether additional compliance tests were required? 2 CFR 200.514(c)(4) AT1-6 Did the auditor report all significant deficiencies and material weaknesses and significant instances of abuse that are identified in the audit documentation? 2 CFR 200.516(a)(1) AT1-7 Does the audit documentation include an evaluation of whether control deficiencies (either individually or in combination) were significant deficiencies or material weaknesses, in relation to the compliance requirement for the major Federal program? AU-C 265.09-.10 AT1-8 If exceptions identified in the audit documentation were not reported, does the audit documentation support the basis for the auditor’s conclusion (“proper disposition of exceptions”)? AU-C 230.08(c); AU-C 265.08-.10 AT1-9 In the judgment of the reviewer, were the nature and extent of the documented tests of controls sufficient to support the auditor’s conclusion on the effectiveness of internal control for preventing or detecting noncompliance relevant to the material compliance requirements for the major Federal program? 2 CFR 200.514(c); GAS 4.15; AU-C 230; AU-C 935.20, .28 In the judgment of the reviewer, does the Auditor's Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance accurately reflect the results of the internal control work for the major Federal program? Testing for Compliance with Direct and Material Compliance Requirements For those compliance requirements that the auditor determined to be direct and material to the major Federal program, does the audit documentation support that the auditor: 2 CFR 200.514(d) Planned and performed compliance testing sufficient to meet the audit objectives identified in the Compliance Supplement? [Note: Reviewers should ensure the auditor applied the appropriate criteria.] AU-C 935.19, .21; AAG-GAS 10.77 Evaluated and appropriately disposed of exceptions identified in the compliance testing? AU-C 230.08(c); AU-C 935.28, .40
Question Criteria Yes No N/A W/P Ref. Did the auditor report: Material noncompliance with the provisions of Federal statutes, regulations, or the terms and conditions of Federal awards related to a major program? 2 CFR 200.516(a)(2) The circumstances concerning why the auditor's report on compliance for each major program is other than an unmodified opinion, unless such circumstances are otherwise reported as audit findings in the schedule of findings and questioned costs for Federal awards? 2 CFR 200.516(a)(5) Known or likely fraud affecting a Federal award, unless such fraud is otherwise reported as an audit finding in the schedule of findings and questioned costs for Federal awards? 2 CFR 200.516(a)(6) Known or likely questioned costs that are greater than $25,000 for a type of compliance requirement for a major program? 2 CFR 200.516(a)(3) In the judgment of the reviewer, does the audit documentation support: The auditor’s consideration of instances of noncompliance, both individually and when aggregated, in determining the overall opinion on compliance? AU-C 935.28-.29; AAG-GAS 10.12 The work performed and the opinion reached on compliance for the major Federal program? GAS 4.15; AU-C 230; AU-C 935.28-.29 In the judgment of the reviewer, were the nature and extent of the documented tests of compliance sufficient to enable the auditor to determine whether the auditee complied with the direct and material compliance requirements for the major Federal program? 2 CFR 200.514(d) In the judgment of the reviewer, did the auditor render an appropriate opinion on the major Federal program in the “Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance Required by the Uniform Guidance”?
Major Federal Program Name: CFDA Number(s): Compliance Requirement AT1-2b: Assessment of “Direct and Material” AT1-4a: Understanding of Internal Controls AT1-4b through AT1-4d: Planned and Performed Testing of Internal Controls AT1-11: Planned and Performed Compliance Testing DM, NDM, N/A W/P Ref Y/N W/P Ref W/P Ref W/P Ref A Activities Allowed or Unallowed B Allowable Costs and Cost Principles C Cash Management D Reserved E Eligibility F Equipment and Real Property G Matching Level of Effort Earmarking H Period of Availability I Procurement Suspension and Debarment J Program Income K Reserved L Reporting M Subrecipient Monitoring N Special Tests and Provisions DM: Direct and Material to Program N/A: Not applicable to Program (Compliance Supplement or auditor’s assessment) NDM: Not Direct and Material to Program Reasonable: Audit Documentation supports auditor’s assessment