Current through August 26, 2024
(1) INDEPENDENCE REQUIREMENTS. An auditor
engaged by a school to meet the requirements under this chapter and s.
119.23,
Stats., shall comply with the standards of the American Institute of Certified
Public Accountants, including all of following:
(a) An auditor shall comply with the
requirements of s.
Accy 1.101.
(b)
An auditor shall obtain the school's trial balance required under s.
PI 35.11(2) if the auditor is completing
compilation or review services.
(c)
Except as provided in par. (d), an auditor may not post or prepare for posting
typical reoccurring financial transactions to the school's general ledger,
including cash receipts and disbursements, invoices or billings for services,
billings from vendors and suppliers, and payroll activity.
(d) An auditor shall obtain written approval
of the school's management prior to posting adjusting, correcting, and closing
journal entries to the school's general ledger. An auditor's working papers
shall document evidence of management approval for all such entries resulting
from a financial statement compilation, review, or audit.
(e) If an auditor assists in the preparation
of a school's budget, the auditor shall do all of the following:
1. Comply with s.
Accy 1.201(1) (e) regarding
forecasts.
2. Identify that such
assistance was provided, if required by the department.
(2) INQUIRIES. An auditor shall
promptly respond to inquiries or requests made by the department. The auditor
shall notify the school of any inquiries or requests made by the department and
the auditor's response.
(3) WORKING
PAPERS RETENTION. An auditor shall retain working papers relating to the
enrollment audits under s.
PI 35.07, the
audit required under ss.
PI 35.09 and 35.10, and the report on fiscal and internal control practices under s.
PI 35.13 for at least 5 years from the due date of the
financial audit, unless the department or a law enforcement agency requests the
auditor to retain working papers for more than 5 years.
(4) WORKING PAPERS REVIEW. An auditor shall
permit the department to review audit working papers prepared in support of the
enrollment audits under s.
PI 35.07, the
audit required under ss.
PI 35.09 and
PI 35.10, and the report on fiscal and internal control
practices under s.
PI 35.13. The auditor shall promptly provide copies of
working papers the department requests.
(5) AUDITOR PEER REVIEW REPORT. An auditor
completing any of the audits and agreed upon procedure reports under s.
119.23,
Stats., or this chapter shall file the auditor's peer review required under s.
442.087, Stats., with
the department within 30 days of the report's issuance.
(6) LICENSE REQUIREMENTS.
(a) The auditing firm that is engaged by a
school to complete the audits and agreed upon procedure reports under this
chapter or s.
119.23,
Stats., shall be licensed as a certified public accounting firm by the
accounting examining board under ch. 442, Stats.
(b) The individual auditor who signs the
engagement letter for the audits and agreed upon procedure reports under this
chapter or s.
119.23,
Stats., shall be a licensed certified public accountant by the accounting
examining board under ch. 442, Stats.
(7) AUDITOR BAR.
(a) The department may bar an auditor who
fails to timely and properly fulfill the auditing and reporting requirements of
this chapter or s.
119.23,
Stats.
(b) An auditor who is barred
under par. (a) shall not complete accounting, auditing, or other reporting
requirements for any school participating in a program under ss.
115.7915,
118.60,
and
119.23,
Stats., until such time as the auditor submits to the department evidence
acceptable to the department that the auditor has made procedural changes to
the manner in which the auditor conducts an audit and has successfully
completed professional development training that will enable the auditor to
comply with the requirements of this chapter, chs. PI 48 and 49, and ss.
115.7915,
118.60,
and
119.23,
Stats.
