IPA GUIDELINES

SDCL 4-11-7 provides the framework in which the Auditor General may authorize Independent Public Accountants (IPAs) to perform audits or internal control reviews of various departments, boards, commissions and agencies of, and public corporations within, the State of South Dakota, and monitor their quality.

The Auditor General has established guidelines and procedures for governmental entities to follow when arranging for audits or internal control reviews to be conducted by IPAs. Other guidelines and procedures have been established for authorized IPAs to follow when performing audits or internal control reviews of political subdivisions of the State of South Dakota and certain state agencies. These guidelines have been established to help ensure the audit and internal control review processes are accomplished as uniformly as possible in accordance with generally accepted government auditing standards and in compliance with applicable state and federal laws and regulations.

These policies and procedures are presented on pages 2-19 of this section. They are distributed at DLA audit workshops, and upon request.

Generally, each governmental entity needing an audit or internal control review (ICR) is responsible for making its own arrangements for an IPA to conduct a required audit or internal control review after receiving notification from the Auditor General that the DLA has not scheduled its staff to conduct the required audit or internal control review. Such arrangement is contingent upon authorization by the Auditor General, in accordance with SDCL 4-11-7. A school district may select either the Department of Legislative Audit or an IPA approved by the Auditor General to perform its required audits, in accordance with SDCL 4-11-7.1.

Statutory audit requirements may be found at SDCL 4-11-2 for state and related entities, at 4-11-4 for counties and municipalities, at 4-11-7.1 for school districts and at various locations throughout the South Dakota Codified Laws for other political subdivisions. Additional audit requirements may become applicable through the Single Audit Act Amendments of 1996 and subsequent amendments, local ordinances, or contractual agreements, such as bonded debt covenants.

If a public corporation has not engaged an Auditor within the first 8 months following the end of the period required to be audited, or the audit is not completed by the end of the twelfth month following the end of the period required to be audited, any state agency known or believed to have provided federal financial assistance to the public corporation will be notified. Additionally, if an audit is not arranged by the end of the ninth month following the end of the period to be audited, the Auditor General may cause the required audit to be performed by DLA staff or may select an IPA to perform the required audit.

All audits must be completed and issued by the end of the twelfth month following the close of the fiscal period being audited. For Single Audits, the completion and issuance date is by the end of ninth month following the close of the fiscal period being audited.

Consistent with SDCL 4-11-7 and SDCL 4-11-11, certain guidelines should be followed when engaging an IPA to provide audit or internal control review services.

For audits or ICRs to be performed by IPAs, officials should request in writing the Auditor General's authorization of a specific IPA to provide the appropriate services. The request must be accompanied by a copy of the audit engagement letter (contract between the public corporation and the IPA).

While statute exempts these professional services from bidding, officials are encouraged to issue a Request for Proposal (RFP) for appropriate services to more than one IPA in an effort to obtain the best available service considering quality, timing, experience, availability for follow-up consultation and cost. It may be desirable to arrange for audit services for more than one audit period at a time, subject to annual authorization by the Auditor General. (See RFP guidelines and sample at pages 8-15.)

The Auditor General does not recommend one IPA over another. The South Dakota Board of Accountancy's Annual Register of Certified Public Accountants and Public Accountants will aid public corporations in identifying IPAs who might be authorized to conduct an audit or internal control review. This register may be purchased from: South Dakota Board of Accountancy, 301 E. 14th Street, Suite 200, Sioux Falls, SD, 57104. Referrals may be obtained through the South Dakota CPA Society, PO Box 1798, Sioux Falls, SD, 57101-1798. Also, RFP guidelines are available from and assistance to issue a RFP may be provided by the Auditor General, as time permits.

After receiving the formal request for authorization, the Auditor General will notify entity officials, with a copy to the IPA, whether the IPA chosen is authorized to render the audit or internal control review services. Public corporations should only engage an IPA for audit or internal control review services contingent upon receiving authorization from the Auditor General.

Arrangements for audits or internal control reviews should be made in a timely manner, allowing the final reports to be prepared and properly filed within 60 days of completion of fieldwork by the IPA. Non-Single audit reports must be issued within twelve months of the end of the fiscal period being audited or reviewed. Audits of major state agencies must be issued not later than the date specified in the engagement approval letter to allow incorporation into the state Comprehensive Annual Financial Report. Single Audit reports must be issued not later than the last day of the ninth month following the close of the fiscal period being audited.

SDCL 4-11-7 permits a public corporation receiving audit services to approve progress payments proportionate to the audit work completed so long as at least ten (10) percent of the amount billed is withheld pending approval of the final report by the Auditor General.

Upon completion of the audit or internal control review, the IPA must submit to the DLA a draft copy of the report for desk review. Upon acceptance of the report, the IPA will receive notification and a request to submit enough copies for report distribution and filing. (See pages 7 and 8.)

When the Auditor General receives the final copies of the report, the entity officials and the IPA are notified in writing that the report is accepted. Upon receiving this notice, final payment to the IPA may be made. It should be noted that SDCL 4-11-7 requires approval of the report before final payment can be made for audit or internal control review services.

The minimum standards which must be met by the IPA before the DLA will approve an audit are:

• The audit must be conducted in accordance with generally accepted auditing standards and the applicable revision of Government Auditing Standards, issued by the Comptroller General of the United States, for financial and compliance audits.
• The audit firm shall undergo a Quality Review as required by Government Auditing Standards. The firm shall furnish to the Department of Legislative Audit a copy of its Quality Review Report and related Letter of Comments, if any. Such filing shall occur as soon as practical after the acceptance of the report by the appropriate oversight body, and shall be kept current. An adverse opinion on the quality review will disqualify the audit firm from being approved to engage in government audits.
• Where applicable, the OMB Uniform Guidance must be followed. Other OMB Circulars may also be applicable depending upon the circumstances of the engagement.
• The Checklist of Statutory Controls provided by the Auditor General must be completed and filed with the DLA for municipal and school district audits. The completed Checklist must accompany the draft report.
• The audit must include any other specific requirements of the Auditor General.
• Generally accepted accounting principles applicable to governmental entities, as primarily set forth in GASB Statements and Interpretations effective during the period, shall apply to the financial statements being audited.
• For third class municipality audits, reporting on financial statements prepared on the cash basis of accounting, or an acceptable modification thereof will be allowed. However, compliance with the requirements of federal granting agencies or other legal or contractual requirements governing the accounting base applied to financial statements shall be considered and complied with to the extent possible.
• A copy of the "management letter" must be submitted with the draft report.
• The appropriate number of copies of the final report must be filed with the Auditor General and other officials as listed on pages 7 and 8.
• A statement comprehending professional time and fees billed or to be billed for the audit must be filed with the Auditor General.
• The name(s) of the official newspaper(s) of the political subdivision, other than school districts, must be provided.

The minimum standards which must be met by the IPA before the DLA will approve an Internal Control Review are:

• The ICR be conducted in accordance with generally accepted auditing standards and the applicable revision of Government Auditing Standards, issued by the Comptroller General of the United States, for financial related audits.
• The audit firm shall undergo a Quality Review as required by Government Auditing Standards. The firm shall furnish to the Department of Legislative Audit a copy of its Quality Review Report and related Letter of Comments, if any. Such filing shall occur as soon as practical after the acceptance of the report by the appropriate oversight body, and shall be kept current. An adverse opinion on the quality review will disqualify the audit firm from being approved to engage in governmental Internal Control Reviews.
• The ICR must include any other specific requirements of the Auditor General.
• The appropriate number of copies of the final report must be filed with the Auditor General and other officials as listed on pages 7 and 8.
• A statement comprehending professional time and fees billed or to be billed for the ICR services must be filed with the Auditor General.
• The name(s) of the official newspaper(s) of the political subdivision must be provided.

School District Report Distribution:
To be distributed by IPAs to:

• 1 School District Business Manager
• 1 School District Superintendent
• 1 President of the School Board
• 1+ Each Official Newspaper, together with a legal Notice of Audit, in accordance with SDCL 4-11-7.2

To be filed with the Auditor General for distribution:

• 2 Office Copies (one sided, unbound, may be corner stapled)
• 1+ Division of Education, Office of Elementary and Secondary Education and any other State Agency that provided indirect federal financial assistance
• 1 Library Copy
• 1+ Federal Audit Clearinghouse with a properly completed Data Collection Form (form SF-SAC) and additional report copies as requested.
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• 5+ Total

Municipal Report Distribution:
To be distributed by IPAs to:

• 1 Municipal Auditor/Clerk or Municipal Finance Officer
• 1 Municipal Treasurer (if the municipality has a treasurer)
• 1 Mayor or President of the Town Board of Trustees

To be filed with the Auditor General for distribution:

• 2 Office Copies (one sided, unbound, may be corner stapled)
• 1+ Each Official Newspaper
• 1+ Any State Agency that provided indirect federal financial assistance
• 1 Library Copy
• 1+ Federal Audit Clearinghouse with a properly completed Data Collection Form (form SF-SAC) and additional report copies as requested.
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• 6+ Total

Other Governmental Unit Report Distribution:

The number of report copies for other entities will be determined when the draft report is desk reviewed. A minimum of 4 copies usually will be required.

State Agency Report Distribution: To be filed with the Auditor General for distribution:

• 2 Office Copies (one sided, unbound, may be corner stapled)
• 1 Governor
• 1 Associated Press
• 1 State Library
• 1 USD Library
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• 6 Total

The following provides guidance as to the information governmental entities should include in an RFP in order to ensure that IPAs have the information they need to make a responsive proposal. Proposals received should be evaluated based on the qualifications (experience and education) of the audit personnel who will be performing the audit and professional reputation of the audit firm. Other factors which should be considered are projected audit completion date, and availability of the firm to consult about the implementation of audit recommendations and other matters throughout the year. Finally, estimated audit cost, based on billable hourly rates and projected audit hours should be considered when two or more otherwise equally qualified audit firms submit proposals.

a. Name of contracting parties

• State the name(s) to whom the proposal should be addressed.

b. Audit Schedule

• Indicate the date and time the proposal is due.
• State the date and time the award will be made.
• State the desired completion date of the final audit report. [Note: this date should not be later than the end of the twelfth month following the end of the audit period (the end of the ninth month for Single Audits).

c. Scope of Audit

• Name of the entity to be audited. For example, the entity might be a city, a school district or a special district. Related organizations should be identified for inclusion or exclusion from the audit, based on the criteria of GASB Codification section 2100. Subrecipients of federal pass-through or other monies should be identified.
• Identify the period or periods to be audited and the frequency of audit. For example, the RFP might call for audits for each of the next three to five years to be conducted annually, subject to annual authorization by the Auditor General.
• Where the engagement is awarded for more than one annual audit period, a "fiscal funding-out" clause should also be incorporated into the terms of the engagement.
• State that the audit must be performed in accordance with guidelines of the Auditor General and generally accepted government auditing standards for financial and compliance audits as set forth in the applicable revision to Government Auditing Standards, issued by the Comptroller General of the United States.
• State whether the Single Audit Act of 1984 and OMB's Circular A-128 applies. If so, a listing of federal financial assistance programs, together with the amount of the award, receipts and disbursements for the audit period, or estimates thereof, should be included or appended.

d. Audit Report Review and Processing

• The Auditor General will review a draft of the audit report, and may request to review the related working papers, prior to acceptance of the completed report as required by SDCL 4-11-7.
• The audit firm is required to print reports and distribute them as promulgated in the Auditor General's guidelines.
• The Auditor's Comments (Management Letter), if any, are required to be included as a part of the final report.
• The auditee's response to the audit report must be included in the report should the auditee desire to respond. If there are reported instances of noncompliance or questioned costs related to federal financial assistance programs, the auditee's response and corrective action plan must be included in the audit report.
• The IPA shall retain working papers for a minimum of five years from fieldwork date unless notified in writing by the cognizant federal agency or the Auditor General to extend the minimum retention period. The IPA shall make his working papers available to the Auditor General, federal Inspectors General or their representatives, and subsequent IPA Auditors.

e. Qualifications

• The IPA authorized to perform the audit must possess current firm and individual permits to practice from the South Dakota Board of Accountancy.
• The IPA must be either a Certified Public Accountant, or a Public Accountant initially licensed on or before December 31, 1970.
• The IPA should indicate that any persons involved in planning, directing, conducting substantial portions of the fieldwork or reporting on the audit are in compliance with the Continuing Education and Training requirements of Government Auditing Standards.
• The IPA should state that his firm has undergone a Quality Review or will undergo a Quality Review in accordance with Government Auditing Standards. (A copy of the report may be requested.)
• The names and qualifications of the staff members who will actually conduct the audit fieldwork and report on the audit should be provided.
• The IPA should affirm that he and any assistants are independent from the auditee, its management, and each of its component units and subrecipients.

f. Compensation and Terms of Payment

• Request that the auditing firm submit an estimate of the anticipated audit hours required, current billable hourly rate(s) and approximate cost.
• Describe any unusual circumstances that may require added compensation.

City of Happy Valley 1. Name of contracting party--City of Happy Valley

• Return your proposal to:

Mr. George Jones, Finance Officer
City of Happy Valley
PO Box 1
Happy Valley, SD 57001-0001


• Inquiries concerning your proposal should be directed to Mr. Jones at 555-7171.

2. Audit Schedule

• A written proposal is due at the address in 1., above, before the close of business (5:00 p.m., CST) on November 15, 19X3. Two copies of the proposal should be submitted.
• After reviewing all proposals received, the city will award the audit engagement, contingent upon authorization by the Auditor General, on or about December 1, 19X1. Personal interviews may be required to aid in the award process.
• The selected Auditor will begin work as soon as practical. Audit fieldwork must be completed and the final report issued on or before March 1, 19X2, to facilitate a timely filing of the annual report, and to comply with the requirements of the Farmer's Home Administration.

3. Scope of Audit

• An annual audit shall be made of the City of Happy Valley for the years ended December 31, 19X1, 19X2, and 19X3, subject to annual authorization by the Auditor General. A listing of funds and account groups maintained by the city is attached. Included is a listing showing the federal financial assistance programs in which the City participated in 19X1 and related amounts. The Single Audit Act Amendments of 1996, and OMB Circular A-133 will apply.
• Should the city council fail to make an appropriation for the cost of an annual audit in its annual appropriation ordinance, the audit contract would be null and void. In that event, a biennial audit period would apply the following year. The engagement letter must be reissued in that case, and the estimated audit fee may be adjusted.
• The City was the sponsor for a Community Development Block Grant on behalf of the Happy Valley Volunteer Fire Department in the amount of $410,000.
• Related organizations include the Happy Valley City Library (to be included in the report) and the Happy Valley Volunteer Fire Department (to be excluded from the report because it is a non-profit corporation that derives a majority of its funding from other governmental units and the general public). (Note: If available, it would be appropriate to attach a copy of the most recent annual report and/or audit report.)
• The audit must be performed in accordance with the guidelines of the Auditor General and generally accepted government auditing standards for financial and compliance audits as set forth in the applicable revision to Government Auditing Standards, issued by the Comptroller General of the United States. The purpose of the audit is to issue an opinion on the General Purpose Financial Statements of the City of Happy Valley, and report on its compliance with applicable legal requirements and its internal control structure in accordance with those standards and OMB Circular A-133.

4. Audit Report Review and Processing

• The Auditor General will review a draft of the audit report, and may request to review the related working papers, prior to acceptance of the completed report as required by SDCL 4-11-7.
• The audit firm is required to print reports and distribute them as promulgated in the Auditor General's guidelines.
• Auditor's Comments, if any, are required to be included as a part of the final report.
• We will respond to any Auditor's Comments or reported instances of noncompliance noted in the report. Our response must be included in the report along with our corrective action plan, if any.
• The IPA shall retain working papers for a minimum of five years from fieldwork date unless notified in writing by the cognizant federal agency or the Auditor General to extend the minimum retention period. The IPA shall make his working papers available to the Auditor General, federal Inspectors General or their representatives, and subsequent IPA Auditors upon request.

5. Auditor Qualifications

• The IPA hired to perform the audit must possess current firm and individual permits to practice from the South Dakota Board of Accountancy.
• The IPA must be either a Certified Public Accountant or a Public Accountant initially licensed on or before December 31, 1970.
• The IPA should affirm that any persons involved in planning, directing, conducting substantial portions of the fieldwork or reporting on the audit are in compliance with the Continuing Education and Training requirements of Government Auditing Standards.
• The IPA should state that his firm has undergone a Quality Review or that it will undergo a Quality Review in accordance with Government Auditing Standards.
• The names and qualifications of the staff members who will actually conduct the audit fieldwork and report on the audit should be provided.
• The IPA should affirm that he and any assistants are independent from the City of Happy Valley, its management, and each of its component units and subrecipients.

6. Compensation and Terms of Payment

• The IPA shall submit an estimate of the anticipated audit hours required, current billable hourly rate(s) and approximate cost. To facilitate the estimation process, the books and records of the City shall be available for inspection during normal business hours.
• Included in the proposal as an alternate should be an estimated additional fee for the amount of work necessary to provide an unqualified opinion on fixed assets (e.g., prior audits identified scope limitations related to General Fixed Assets, and fixed assets and related depreciation accounts of the proprietary fund types). (Note: This is optional and is intended as an example of unusual circumstances that may require added compensation.)

An Independent Public Accountant (IPA) desiring to be authorized to conduct governmental audits and/or internal control reviews:

• Shall be a Certified Public Accountant or a Public Accountant initially licensed to practice on or before December 31, 1970, where the audit involves federal financial assistance programs;
• Shall possess current individual and firm permits to practice as required by the South Dakota Board of Accountancy, and may practice as a sole practitioner, a partnership, a professional corporation or association, or other form of business as authorized by the Board of Accountancy;
• Shall have met the Continuing Education and Training requirements of the Comptroller General of the United States; and
• Shall file with the Department of Legislative Audit, a copy of the firms' Quality Review Report and related Letter of Comments, if any, upon its completion in accordance with Government Auditing Standards, and acceptance by the appropriate oversight body. Any firm receiving an adverse opinion on its quality review will be ineligible to perform audits of state and local governmental units in South Dakota.

The purpose of the IPA Report and Working Paper Review Program is to promote uniformity and consistency among public corporation audits or internal control reviews conducted by IPAs, and to ensure conformity with generally accepted government auditing standards and compliance with applicable laws and regulations.

General:

Engagement letters are required. They must set forth the significant terms of the audit. Government Auditing Standards for financial and compliance audits will apply to all audits, additionally, OMB Uniform Guidance. Generally accepted accounting principles established by GASB will apply to all audits, except for certain third class municipalities which may report financial statements on a cash basis of accounting, when not otherwise required to follow GAAP. All engagements to conduct governmental unit audits must be contingent upon receiving authorization from the Auditor General.

State Agency audits must be completed and reports issued not later than the date specified in the engagement approval letter to facilitate the completion of the state's Comprehensive Annual Financial Report. Other audit reports should be completed and issued within 60 days of the end of fieldwork, but must be completed and issued by the end of the twelfth month following the end of the fiscal period being audited or reviewed. However, if the public corporation did not make arrangements for the audit or internal control review within the first eight months following the end of the period to be audited or reviewed, the IPA will be allowed four months from the authorization date to complete the audit or internal control review. This should in no way be interpreted to waive the reporting and filing requirements of the Single Audit Act Amendments of 1996. While reasonable effort should be made to complete the audit by the statutory deadline, the Auditor should consider reporting appropriate Auditor’s Comments and/or Findings and Questioned Costs related to federal financial assistance programs if audit completion deadlines cannot be met because the public corporation did not arrange for an audit to be conducted in a timely manner.

Failure to meet the report completion deadline, noted above, will be viewed as a lack of Due Professional Care (GAS pg. 27, paragraph 3.26) on the part of the IPA, unless an explanation of the reasons for the delay is communicated to the Department prior to the report deadline, is judged to be reasonable in the circumstances, and the delay is acceptable to the auditee and the cognizant or oversight agency, as applicable.

The following additional guidelines apply to IPAs conducting audits of state agencies which are material to a fund type included in the South Dakota Comprehensive Annual Financial Report:

• The IPA will provide the Auditor General a written representation that he is independent under the requirements of the AICPA and South Dakota Codified Laws.
• The IPA will be informed that the audited financial statements of the state agency will be incorporated into the South Dakota Comprehensive Annual Financial Report and that the IPA audited financial statements will be relied upon by the Auditor General.
• The IPA will be informed of the financial statement reporting requirements, including format, specific accounts and note disclosures.
• The IPA will be informed of any specific reporting requirements, items subject to uniformity of accounting practices and transactions affecting more than one state agency.
• If deemed necessary, the Auditor General may review audit programs and discuss audit procedures with the IPA. Since the Auditor General is the principal Auditor for the South Dakota Comprehensive Annual Financial Report, the Auditor General may require additional audit procedures or request increases in sample sizes, if deemed necessary.
• Working papers of all state agency audits that have a material impact on a fund type included in the CAFR will be reviewed.

Desk Reviews:

• Each draft report submitted will receive a desk review for technical merit by DLA.
• Technical errors and other matters noted during the Desk Review will be communicated to the IPA in a letter. Points raised in the letter should be adequately resolved prior to final report acceptance. If resolution requires extensive revision, a second draft report may be required to be desk reviewed. Resolution may be accomplished by adopting the suggested correction that usually accompanies each review point, but may also be accomplished by alternative means. IPAs are encouraged to discuss alternative solutions with the IPA audit liaison.
• Failure to adequately resolve desk review points within the time specified in the desk review point letter, or continued significantly substandard draft reports, may result in revocation of authority to perform state and local governmental audits in South Dakota. Such action may also result in notification to the South Dakota Board of Accountancy.

Working Paper Reviews:

• Working Paper Reviews may be conducted before or after the final acceptance of the audit report. Selection of IPA Reports for a working paper review shall be made so that IPAs performing audits and/or internal control reviews should have at least one report reviewed each year. Significant technical problems noted during the desk review of a draft report may result in working paper selection for review prior to final report acceptance.
• Working papers must be submitted to the Auditor General for review when requested. Working paper reviews will be performed by DLA. Review points raised through the IPA Working Paper Review Process will be summarized in letter form and sent to the IPA for resolution. (Each IPA firm with multiple offices should furnish the Department with the name and address of its quality control officer, who will receive a copy of the point letter.) Each noted deficiency in audit working paper quality will be documented through the use of photocopies, memoranda and analyses, as applicable.
• If the final report has already been accepted, point resolution will require implementation in any uncompleted audit engagements. In such cases, one or more additional sets of working papers may be selected to determine whether or not points raised have been adequately resolved. If the final report has not been accepted, and resolution requires additional fieldwork or extensive additional documentation, a second review may be required. Point resolution may be accomplished by adopting a suggested correction that may accompany a review point, but usually will be left to the judgment of the IPA. IPAs are encouraged to discuss alternative solutions with the IPA audit liaison. Points raised in the letter should be adequately resolved prior to final acceptance of the audit report.
• If an IPAs working papers are found to be significantly substandard, based on generally accepted government auditing standards, appropriate actions will be taken; including, but not limited to, revocation of authority to perform any uncompleted audits and suspension from being authorized to conduct government audits or internal control reviews for a specified period of time.
• Failure to adequately resolve working paper deficiencies within the time specified in the working paper review point letter, or continued substandard audit working papers, will result in revocation of authority to perform state and local government audits in South Dakota. Such action may also result in notification to the South Dakota Board of Accountancy.

Confidentiality:

• Desk and working paper reviews are to be conducted with adherence to strict confidentiality of any information obtained during the course of the review. The reviewer should not disclose any information concerning the quality of the IPA's work without prior authorization from the Auditor General. Access to Quality Review Reports, related letters of comment, and working paper review documentation is restricted to the Auditor General, the Audit Managers and designated DLA staff members. These individuals will be allowed access to these items as needed to carry out their official duties.

Independence:

• Reviewers must maintain their independence with respect to the IPA whose work is being reviewed. The independence policies of the Department of Legislative Audit shall apply to reviews of IPA working papers.

Competence:

• DLA staff members conducting IPA working paper reviews shall be knowledgeable about and proficient in performing audits in accordance with Government Auditing Standards and reporting on financial statements prepared in accordance with generally accepted accounting principles or other comprehensive bases of accounting frequently encountered in government.

Other:

• A record of each audit authorized to be conducted by an IPA shall be established and maintained as a control record to monitor the progress of the audit or internal control review.
• DLA staff members will be assigned by an Audit Manager on an as needed basis to assist the IPA audit liaison in the performance of desk and/or working paper reviews.
• When a working paper review is completed by a DLA staff member, the reviewer will draft a letter of comments indicating the points to be cleared by the IPA. The draft letter of comments shall be forwarded to the IPA audit liaison for review and concurrence.
• The working paper review checklist, and appropriate documentation of noted deficiencies (photocopies, memoranda or analyses) supporting each point in the letter of comments shall be forwarded to the IPA audit liaison. All final letters of comments shall be signed by the IPA audit liaison and forwarded to the IPA with a copy to the DLA staff member who performed the IPA working paper review.

In order to encourage and promote efficiency in government audits, the Department shall make its working paper files available to IPAs performing subsequent audits. IPAs are encouraged to allow successor Auditors to review their working papers for the same reasons.

IPAs may review prior DLA audit working papers upon a written request sent to the Auditor General to set up an appointment for review of DLA working papers in Pierre during normal business hours. If this is not possible, contact the Auditor General for other options.