Overview

Professional training on auditing U.S. federal agency financial statements, for auditors and audit supervisors working under the CFO Act framework. Covers the legislative and regulatory framework (CFO Act, GPRA, GMRA, FFMIA, PIIA, OMB circulars, GAO standards), the structure and content of federal financial statements and reports (PAR, AFR, OMB Circular A-136, budgetary and proprietary accounting), and each audit phase: planning and risk assessment with GAO/CIGIE methodology, internal control evaluation using FISCAM and the GAO Green Book including information system and FISMA compliance controls, control, compliance and substantive testing with audit sampling and fraud risk evaluation, and reporting of findings, deficiencies, material weaknesses, materiality judgments, and audit opinions.

Syllabus

Module 1: Framework for Financial Statement Report and Related Audit Requirements

Understand key legislation such as the CFO Act, GPRA, GMRA, FFMIA, and PIIA.
Explore the structure and objectives of federal financial reporting frameworks.
Review audit-related OMB circulars and GAO standards for compliance and accountability.
Assess the components and importance of Performance and Accountability Reports (PAR) and Agency Financial Reports (AFR).

Module 2: Introduction to Financial Statements and Reporting

Identify and describe federal financial statements: Balance Sheet, SBR, SCNP, etc.
Understand the basis of accounting: budgetary and proprietary.
Analyze the structure, purpose, and components of federal reports under OMB Circular A-136.
Apply knowledge of financial statement assertions and audit implications.

Module 3: Planning Phase of the Financial Statements

Develop audit plans and determine scope using GAO/CIGIE methodology.
Apply risk assessment procedures, materiality thresholds, and internal control evaluations.
Understand entity operations, environment, and financial systems for audit planning.
Establish audit strategy and assign team responsibilities accordingly.

Module 4: Internal Control Phase of the Financial Statements

Evaluate internal control effectiveness using FISCAM and GAO Green Book standards.
Identify and test information system controls and general control categories.
Prepare Line-Item Risk Analyses and Specific Control Evaluations.
Assess compliance with laws and IT security frameworks like FISMA.

Module 5: Testing Phase of the Financial Statements

Execute audit test plans and apply substantive testing and audit sampling methods.
Design and perform control, compliance, and substantive procedures.
Evaluate fraud risks, system control effectiveness, and misstatement impacts.
Conduct audit sampling and interpret analytical and detail testing results.

Module 6: Reporting Phase of the Financial Statement Audits

Develop audit findings and determine audit opinions (unmodified, modified, disclaimer, adverse).
Document internal control deficiencies, material weaknesses, and compliance issues.
Evaluate management’s responses and prepare final audit reports.
Apply materiality principles and assess uncorrected misstatements’ impact.