PREPARING FOR AN AUDIT

Presented by Chris Ray

Partner - KPMG LLP

Presented by Chris Ray

Partner - KPMG LLP

2

The Role of the Independent Auditor

Provide PBC List (see Chapter 9 for examples) Financial statement audit

A-133 audit (higher and limited scope)

Communicate progress and any difficulties or issues encountered during the audit, including proposed management letter comments and single audit findings, to the KPMG Systemwide team (bi-weekly progress reports)

Meet deadlines set by campus and audit team

3

Understanding the Role of the Campus

To have all requested schedules, including reporting package, PRIOR to beginning of fieldwork

Provide suitable workspace, including phone and internet connections

Designate campus contacts for F/S and A-133 audits

Meet deadlines set by campus and audit team

4

Key Deadlines

Auxiliary organizations’ audited financial statements due to Chancellor’s Office (CO) – September 30, 2004

Campus reporting package (financial statement and A-133 audits, including FISAP) due to CO – October 25, 2004

5

Planning Meeting

Team introductions

Current year activity and issues

Scope of audit

PBC list clarification

Confirmations

Key deadlines

Auxiliary organizations

Reporting package

Management’s discussion and analysis

Stand-alone financial statements

Confirm fieldwork timing

6

Sample

Schedules

7

2004 A-133 Higher Scope Campuses

Long Beach

Northridge

Pomona

Sacramento

San Diego

San Francisco

Stanislaus

8

KPMG Information Risk Management (IRM) Audit Team

Initial campus information technology (IT) questionnaire – drives planning and scoping efforts

Scope of work includes:

Updating our understanding of the IT environment

Financial aid system controls (at selected campuses)

Peoplesoft IT application controls for the Human Resources, Finance, and Student Administration modules

Key IT controls (i.e. 3-way match, chart of accounts, etc.)

Key user access and segregation of duties controls

Data conversion from legacy to Peoplesoft, if applicable

9

IRM Testwork– Key Dates

June 11, 2004 – Campus to submit initial PBC requests to CO

July 2, 2004 – Campus to submit additional PBC requests, as applicable, to CO

Week of July 25, 2004 – Conference calls with campuses

August 2004 – On-site testwork at the following campuses:

Long Beach

Northridge

Pomona

San Diego

10

Questions?