ANNUAL FINANCIAL STATEMENT AUDIT TIMELINE
Ø March – April: Auditors perform planning activities to explore options for preparing and auditing financial statements, addressing potential problems, and implementing lessons learned from the prior year’s audit.
o The CFO and OIG agree on the starting date for the audit, set the entrance conference date, and determine which key entity organizations should be included in the entrance conference during an initial planning meeting.
o The OIG staff (or its contractor) provides the CFO staff with a high-level overview of the audit and staffing plan, which includes the work to be performed; the nature, timing, and extent of planned work (as is practicable); the level of assurance; and any potential restrictions on the auditors’ reports.
o Auditors conduct process meetings and walkthroughs
o Auditors identify key internal controls
Ø April – August: Auditors perform interim testwork to facilitate early identification of potential problems and reduce the effect on year-end workload.
o Data is tested using populations as of: March 31, June 30, and August 31.
o Key internal controls are tested
o Most information technology (IT) test work is performed
o OIG personnel bring issues to entity management’s attention as soon as they identify them to allow for resolution as early as possible.
Ø September – October: Auditors perform year-end testwork and issue findings to seek concurrence on the facts and circumstances surrounding internal control findings, compliance issues, and audit adjustments.
o Auditors test financial statement balances as of or for the period ending September 30.
o Conclusions are combined with earlier testwork to form an overall opinion on the financial statement balance being tested.
o Financial statements, footnotes, and other disclosures in the DOT Agency Financial Report and FAA Performance and Accountability Report are prepared.
Ø October – November: Following applicable guidelines, auditors and OST B30 staff prepare financial and audit reports, allowing adequate time to allow time for appropriate persons to review and respond to the report(s) and for auditors to incorporate comments.
In order to meet the November 15 reporting date mandated by OMB, this process must adhere to a very strict timeline. Extensive coordination between the auditors, OST B30 staff and management, the CFO, the Deputy Secretary, and the Secretary is vital to ensure OMB guidance and requirements are met, and to resolve issues to prevent last minute surprises or delays to the audit process.
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