PREPARING FOR AN AUDIT

1
PREPARING FOR AN AUDIT

• 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 Chancellors 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
• Managements 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?