Auditing Resource Center

Best Practices

GFOA identified the following best practices related to auditing.

 

Advisory

  • GFOA Advisory: Offering Statements and the Auditor’s Role - GFOA makes the following recommendations regarding auditor association with audited financial statements included in offering statements and auditor association with audited financial statements posted on a government’s website:
  1. Having paid for the independent audit, a government owns the audited financial statements and should feel free to use them in any appropriate manner.
  2. The independent auditor should not be permitted to create an essentially artificial “association” with audited financial statements included in offering statements or posted on the government’s website simply by inserting a clause to that effect in the audit contract.
  3. When the independent auditor actually does happen to become associated with audited financial statements included in an offering statement, a state or local government should take steps to avoid unwarranted delays and unjustified costs.
  4. The audit contract should clarify that the government is free to post its audited financial statements on its
    website.