The Audit Program Section III Reporting

Date Issued 6/06 SECTION I – GENERAL COMPLIANCE CHAPTER I APPOINTMENT, SCOPE AND DECLARATION Appointment of Auditor N.J.S.A. 18A:23-8 requires that an audit of the accounts of a school district be made only by a registered municipal accountant or a certified public accountant of New Jersey who holds an uncanceled registration license as a public school accountant for New Jersey. In accordance with NJOMB Circular 04-04 (www.state.nj.us/infobank/circular/cir0404b.htm), school district management must obtain the audit firm’s latest external quality control review report (peer review) prior to appointing said firm for the annual audit. A district board of education should refer to N.J.A.C. 6A:23-2.2(i), for regulations on obtaining audit firm peer reviews http://www.nj.gov/njded/code/current/title6a/chap23.pdf . The code requires that districts engage only licensed public school accountants who have had a peer review performed in accordance with Government Auditing Standards, (Yellow Book) and that districts obtain a copy of the audit firm’s peer review. The board of education is required to review the report prior to the engagement of the annual audit, and to acknowledge its review of the report in the minutes that authorizes the engagement of the public school accountant. Generally when a request for proposal (RFP) is issued for annual audit services, audit firms will submit their peer review with the RFP. A returning audit firm will ...