Section 14503 Of Chapter 3. Financial And Compliance Audits From California Education Code >> Division 1. >> Title 1. >> Part 9. >> Chapter 3.
14503
. (a) Financial and compliance audits shall be performed in
accordance with General Accounting Office standards for financial and
compliance audits. The audit guide prepared by the Controller shall
be used in the performance of these audits until an audit guide is
adopted by the Education Audits Appeal Panel pursuant to Section
14502.1. When an audit guide is adopted by that panel, the adopted
audit guide shall be used in the performance of these audits. Every
audit report shall specifically and separately address each of the
state program compliance requirements included in the audit guide,
stating whether or not the district is in compliance with those
requirements. For each state program compliance requirement included
in the audit guide, every audit report shall further state that the
suggested audit procedures included in the audit guide for that
requirement were followed in the making of the audit, if that is the
case, or, if not, what other procedures were followed. If a local
education agency is not in compliance with a requirement that is a
condition of eligibility for the receipt of state funds, the audit
report shall include a statement of the number of units of average
daily attendance, if any, that were inappropriately reported for
apportionment.
(b) An independent auditor shall not engage in financial or
compliance audits unless, within three years of commencing the first
of the audits, and every successive three years thereafter, the
auditor completes a quality control review in accordance with General
Accounting Office standards. The time period between commencement of
the first audit, or completion of a quality control review, and
completion of a subsequent quality control review shall be calculated
from the first day of the month following commencement of the audit
or completion of the quality control review. Notwithstanding this
subdivision, independent auditors may continue to perform any
financial and compliance audits until January 1, 1994.