Financial Audit Manual
Update
AGA, DC Chapter Conference
May 7, 2008
Roger Stoltz, GAO & Alex Biggs, DOL, OIG
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Sources of FAM Changes
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Auditing & attestation standards (GAAS)
Yellow Book (GAGAS)
OMB audit and reporting guidance
FASAB accounting standards
Laws and regulations
Peer reviews and inspections
Issues from auditors doing work
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Activities Affecting the FAM
• SAS #100-114 (December 2006)
• Yellow Book (January & July 2007)
• OMB Circulars A-123 & A-136 & Bulletin 07-04
(2007)
• FASAB Standards through May 2007 (SFFAS
#32)
• Laws and Regulations (Antideficiency reporting)
• Peer Reviews & Inspections (IS & audit work)
• Various Issues from Audit Work
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SAS #104-111 Audit Risk Standards
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Effective for FY 2008 audits
Risk of material misstatement
Design and performance of audit procedures
Planning and supervision
Audit evidence
Terminology
Affects FAM 100-500 Methodology (Volume 1)
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FAM 100 Overview
• Must
• Should
• Generally should
• May
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FAM 215 Client Understanding
• New FAM 215, 215 A, 215 B
• Who is the client?
• Those charged with governance
• Communication
• Engagement letters
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Other FAM Planning Changes
• FAM 235 Identify Audit Assertions
• FAM 260 Identifying Risk Factors
• FAM 285 Plan Locations to Visit
• FAM 290 Documentation
• FAM 295 B Material Misstatements
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FAM Internal Control Changes
• FAM 310 Overview
• FAM 320 Information Systems
• FAM 350 Control Tests & FFMIA
• FAM 380 Other Considerations
• FAM 390 Documentation
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FAM Testing Changes
• FAM 410 Overview
• FAM 420 Design Audit Procedures
• FAM 450 Sampling Control Tests
• FAM 470 Substantive Procedures
• FAM 475 Analytical Procedures
• FAM 490 Documentation
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FAM Reporting Changes
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FAM 540 Evaluating Misstatements
FAM 550 Other Audit Procedures
FAM 580 Draft Reports
FAM 590 Documentation
FAM 595A Example Unqualified Report
FAN 595B Example Modifications
FAM 595C Uncorrected Misstatements
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FAM Volume 2 Changes
• Effects of Professional Standards
• FAM 650 Using the Work of Others
• FAM 701 Compliance with FFMIA
• FAM 802 General Compliance
• FAM 803 Antideficiency Act
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More FAM Volume 2 Changes
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FAM 902 Auditing Intragovernmental
FAM 903 Auditing Cost Information
FAM 921 Auditing FBWT
FAM 931 Auditing Heritage Assets
FAM 941 Auditing Social Insurance
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FAM Volume 2 Reporting Changes
• FAM 1001
Management Representations
• FAM 1001A Example Mgt Rep Letter
• FAM 1002
Inquiries of Legal Counsel
• FAM 1003
Audit Completion Checklist
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Issue Revised FAM
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FAM volumes are issued electronically
IG NET messages to Inspector Generals and others
Posted on GAO and PCIE web sites
Joint transmittal letter with attachment highlighting key
changes by FAM section
WORD/ACROBAT files by FAM section
Printed copies can be made
FAM Volume 3 was issued August 28, 2007
FAM Volumes 1 & 2 to be issued in May 2008
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Contacts & Comments
Contacts:
• GAO -- Call Roger Stoltz at (202) 512-9408 or e-mail at
stoltzr@gao.gov
• GAO -- Call Janet Krell at (202) 512-4716 or e-mail at
krellj@gao.gov
• PCIE – Call Alex Biggs at (202) 693-5258 or e-mail at
Biggs.Alex@oig.dol.gov
• PCIE – Call Joel Grover at (202) 927-5768 or e-mail at
GroverJ@oig.treas.gov
Any comments or questions?
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