Audits of State and Local Governments
What You Need to Know

This title provides accountants with critical "how-to" guidance on planning, performing, and reporting on your audit engagements, including financial reporting and the financial reporting entity, revenue and expense recognition, capital asset accounting, and the elements of net position on audits of state and local governments. It covers newly issued accounting and auditing standards, pension and OPEB standards, going concern, fair value, and Yellow Book updates.

It prepares accountants to

• Identify the latest principles of auditing and accounting for state and local governments.
• Identify new GASB standards.
• Review in detail auditing considerations including risk assessment, materiality, group audits, and performing and concluding the audit.
• Re-examine significant accounting transactions including financial instruments; revenues and receivables; capital assets; expenses/expenditures and liabilities; net position and financial statement reconciliations.
• Identify guidance for special-purpose governments like hospitals, schools district, transportation systems, colleges and universities and more.
• Prepare financial statements in accordance with a special purpose framework through review of illustrative auditor's reports.

Chapter 1 1-1

The Governmental Environment and GAAP 1-1

Key Environmental Differences Between Government and Business  1-2

Overview of the Financial Reporting Model  1-14

Summary 1-16

Practice Questions  1-17

Chapter 2 2-1

Measurement Focus and Basis of Accounting  2-1

Measurement Focus and Basis of Accounting  2-2

Terminology  2-6

Summary 2-11

Practice Questions  2-12

Chapter 3 3-1

Governmental Funds: Revenues and Expenditures  3-1

Revenues  3-2

Expenditures  3-6

Summary 3-12

Practice Questions  3-13

Chapter 4  4-1

Fund Financial Statements and the Reporting Unit  4-1

What a Government Reports  4-2

Fund Financial Statements  4-3

Reporting by Major Funds  4-8

Governmental Funds 4-10

Proprietary Funds  4-12

Fiduciary Funds  4-16

The Reporting Entity 4-17

Primary Government 4-18

Reporting Component Units  4-21

Joint Ventures and Other Organizations  4-23

Summary 4-24

Practice Questions  4-25

Chapter 5  5-1

Government-Wide Financial Statements and the CAFR  5-1

The Government-Wide Statements  5-2

Producing Government-Wide Statements  5-7

Comprehensive Annual Financial Report (CAFR)  5-15

Summary 5-19

Chapter 6  6-1

Special-Purpose Governments and Special Purpose Frameworks  6-1

Background  6-2

Special-Purpose Frameworks  6-5

Practice Questions  6-9

Appendix A  Chapter 6, A-1

Appendix A  Chapter 6, A-1

Appendix B  Chapter 6, B-1

Appendix B Overview of Reporting Requirements for Special Purpose

Financial Statements  Chapter 6, B-1

Chapter 7 7-1

Auditing Considerations for Governmental Entities  7-1

Risk Assessment for a Government  7-2

Understanding of the Entity and Its Environment  7-4

Understanding Internal Controls  7-7

Materiality  7-12

Each major component of the reconciliation.  7-16

Going Concern Considerations  7-18

Summary 7-24

Chapter 8 8-1

Group Audits  8-1

Summary 8-12

Chapter 9 9-1

Reporting on the Audits of Governmental Financial Statements  9-1

Required Supplementary Information, Supplementary Information, and Other Information 9-9

Summary 9-22

Appendix A  Chapter 9, A-1

Appendix A  Chapter 9, A-1

Chapter 10 10-1

Governmental Pensions and OPEB Accounting, and Auditing  10-1

Summary  10-16

Illustrative Auditor's Report

Chapter 11  11-1

Federal Government Activities  11-1

OMB Compliance Supplement for Single Audits 11-17

Glossary 1

Index 1

Solutions Solutions 1

Chapter 1  Solutions 1

Chapter 2  Solutions 2

Chapter 3  Solutions 3

Chapter 4  Solutions 4

Chapter 5  Solutions 5

Chapter 6  Solutions 6

Chapter 7  Solutions 8

Chapter 8  Solutions 9

Chapter 9  Solutions 10

Chapter 10 Solutions 11

Chapter 11 Solutions 12

Jack F. Georger, CPA, is a partner of the Assurance Services group of The Pun Group. By leveraging more than 37 years of public accounting and auditing experience in the governmental, agribusiness, financial services, manufacturing, and non-profit sectors, he brings in-depth knowledge and practical expertise to each client engagement. Georger coordinates plans and manages financial-audit activities, consulting activities, federal- and state-compliance-audit activities, performance audits and numerous quality-control and internal-control reviews for a broad mix of governmental agencies and programs throughout the United States.
He is a continuing-professional-education-course instructor for the AICPA. He instructs over 300 hours on accounting and auditing subjects annually. He has coauthored training material in governmental accounting and auditing for the AICPA and is the technical reviewer of the CCH Knowledge-Based Audits of State and Local Governments with Single Audits.
Georger is licensed to practice as a Certified Public Accountant in the states of California, New York, Virginia, Maryland, District of Columbia, Georgia, South Carolina, Connecticut (inactive), Missouri, and Wyoming (inactive), and he is a Certified Internal Auditor (CIA).