Current through Register 2024 Notice Reg. No. 38, September 20, 2024
In addition to the requirements of 2 Cal. Code Regs., Section
18994, audits conducted pursuant to
Government Code Section
90001
shall meet the following standards:
(a) General.
(1) The audit is to be performed by a person
or persons having adequate technical training and proficiency for the tasks
required.
(2) In all matters
relating to the audit work, the audit organization and the individual auditors
shall maintain an independent mental attitude.
(3) Due professional care is to be used in
conducting the audit work and in preparing the report.
(b) Field Work.
(1) The work is to be adequately
planned.
(2) Field auditors and
assistants are to be properly supervised.
(3) An evaluation is to be made of the system
of internal control to assess the extent it can be relied upon in the
determination of the nature and extent of the audit tests to be
applied.
(4) Sufficient, competent
evidence, including source documents, is to be obtained through inspection,
observations, inquiries, and confirmations to afford a reasonable basis for an
opinion regarding the filing under examination.
(5) A review is to be made of compliance with
legal and regulatory requirements.
(c) Reporting.
(1) At the completion of every audit, written
audit reports are to be submitted to the Fair Political Practices Commission
and to officials listed in Government Code Section
90004 as
well as to the filer and be made available for public inspection.
(2) Reports are to be issued on or before the
dates specified by law or regulation and, in any event, as promptly as possible
to make the information available for timely use by the Fair Political
Practices Commission and other enforcement agencies, as well as by the filer
and the public.
(3) The content of
each report will include:
A. A clear
explanation of the scope of the audit.
B. An expression of the auditor's opinion on
whether the information contained in the filings is presented fairly and in
conformity with the provisions of the Act and related rules and
regulations.
C. Explanations of
instances of material noncompliance with legal or other regulatory
requirements.
D. Relevant responses
made by filers and, if appropriate, the auditor's comments on those
responses.
(4) Report
preparation, review and processing procedures should be applied to produce
reports that contain no omissions of material findings or errors of fact, logic
or reasoning.
(5) Findings shall be
presented in an objective and unbiased manner and should include sufficient
information to provide readers with proper perspective.
1. Change without regulatory effect renumbering former section 18916 to section 18995 filed 1-30-95 pursuant to section 100, title 1, California Code of Regulations (Register 95, No. 5).
2. Editorial correction of HISTORY 1 (Register 95, No. 13).
3. Editorial correction of subsection (c)(3)D. (Register 96, No. 43).
4. Change without regulatory effect amending section heading and first paragraph filed 2-23-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 9).
Note: Authority cited: Section 83112, Government Code. Reference: Sections 90000, 90001, 90004 and 90007, Government Code.
