Purpose of the Audit
The organization-wide audit will encompass the financial statements required by GASB Statement No. 34 and the Texas Education Agency Financial Accountability System Resource Guide for the District. The audit is to be performed in accordance with generally accepted auditing standards (GAAS) and generally accepted government auditing standards (GAGAS).
The financial statement audit is to determine whether:
- The financial statements present fairly the financial position, results of operations, and cash flows or changes in financial position in accordance with generally accepted accounting principles, and
- Whether the School has complied with laws and regulations for those transactions and events that may have a material effect on the financial statements.
The financial related audit will also include determining whether
- financial reports and related items are fairly presented,
- financial information is presented in accordance with established or stated criteria, and
- the school has adhered to specific financial compliance requirements.
As a part of the audit of the general-purpose financial statements, the annual audit will also include obtaining an understanding of the school internal control and reporting any significant deficiencies or material weaknesses relating to the internal control systems coming to the attention of the auditors. A study and evaluation of internal control will include internal accounting and administrative controls for major federal financial assistance programs above USD 750K) in accordance with standards for risk assessment for major federal financial assistance. Any material weakness noted during the study and evaluation of internal accounting and administrative controls and other kinds of noncompliance and questioned costs will be reported in compliance with the Single Audit Act.