MEMORANDUM FOR CHIEF
FINANCIAL OFFICERS & INSPECTORS GENERAL
As an increasing
number of agencies enter into service arrangements with other entities,
it is important that assurance of internal control over procedures and
processes supporting those services be obtained. Service providers must
provide client agencies with an independent audit report in accordance
with Statement of Auditing Standards 70 for the client’s independent
auditor to rely upon in conducting their audit.
that are providers of such services, such as payroll administration, must
engage an external auditor to perform this audit work and make that report
available to its clients. This activity is typically added to the scope
of the independent auditor’s financial statement engagement.
this requirement with your agency to ensure compliance.
Linda M. Springer