Overview of Audit Contracting with the Office of the Utah State Auditor
Various state agencies are audited by independent CPA firms in order to assist the Office in completing the State’s annual financial and compliance audit in a timely manner. The independent audits are performed under contract with the Office of the State Auditor.
Decision to Contract for an Audit
The decision to contract for an audit is based on various factors including:
- Deadlines for issuance of the audit report.
- Availability of internal Office staff to meet these deadlines.
- Professional expertise required for the audit (e.g. specialized industries such as Health Care).
- Other agency requests, as needed.
When a decision has been made to contract for an audit, the following steps are followed:
- The Office issues a Request for Proposal (RFP) inviting CPA firms that have expressed interest in performing state audits to submit a bid proposal.
- Bid proposals are received and evaluated by the Office and the state agency to be audited.
- The Office consults with the state agency to determine the best bid proposals based on cost, industry experience, CPA firm expertise and qualifications, and prior experience with the CPA firm.
- CPA firms are notified of acceptance / rejection of their bids.
- Contract for services is prepared by the Office and signed by the Office, CPA firm, auditee, and oversight entity (if applicable).
To qualify to perform audits of State agencies under contract with the Office, the CPA firm must:
- Be properly licensed for public practice as a CPA firm in the State of Utah.
- Be independent of the State agency in accordance with the AICPA Code of Professional Conduct – Independence Rule.
- Meet the requirements of Government Auditing Standards, published by the U.S. General Accountability Office, including, continuing professional education, independence, internal quality control, and external triennial peer review.
Audits contracted for the Office must be performed in accordance with generally accepted auditing standards established by the AICPA, and Government Auditing Standards established by the U.S. General Accountability Office.
All CPA firms performing audit work for State agencies under the direction of the Office must sign a standard contract for service. The contract specifies the audit requirements, including reporting due date, as well as the audit fee.
With questions or if a firm would like to be on the list to receive notification of issued RFP’s, please contact:
Mandy Teerlink, Technical Writer