| ID | Status | Date | Public/Private | Industry | AHACPA Contact |
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| #17007 | Closed | public | Multifamily | Les Sparks |
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I have been asked to do a Single Audit of a 202 loan program that has a Capital Advance loan of $724,800, plus PRAC receipts of $29,000, which put them over the NFP $750,000 limit. Can I even do this audit? Single Audit requires the auditor to document the internal controls, and verify with walk-throughs for YB, then define internal controls over major programs (the loan) and test those internal controls under UG. Is this even possible at this point, or do I have such a basic scope limitation, I cannot render an audit opinion? |
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Pamela, you are correct about the limit and the need for a audit. However, I am not aware of any specific reason for there to be an issue doing the audit. Are you suggesting that the passage of time makes this more difficult or is there another concern.
Let me know.
Les Sparks
From: AHACPA Support <support@ahacpa.org> |
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Les Thanks for the response. Since it is for the year 2016, how can I follow UG and YB requirements to assess internal control, verify with walk-throughs, define IC over major programs and test those controls? Since these are requirements that I cannot fulfill since its now 2022, how can I give an audit opinion? I know that the people that kept the books in 2016 are NOT the ones in charge now. So, yes, the passage of time and change in controls would make it difficult, or maybe impossible? Please let me know your thoughts. Much appreciated. Pam |
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Okay, 2016 and change of ownership. The change in ownership is a greater obstacle than the time. May CPAs do audit previous period and find a way to get it done. In your case, who will sign the rep letter? I assume you can get access to records, but the ownership is the primary item to get around. IF current owners will not sign, I am guessing that the old owner cannot or will not sign. I would start the conversation there. Re you auditing the more recent years also or is this a one-time 2016 audit?
Les Sparks
From: AHACPA Support <support@ahacpa.org> |