Considering the Results of Previous Audits and Attestation Engagements
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GAO-03-673G Government Auditing Standards > Chapter 6 General, Field Work, and Reporting Standards for Attestation Engagements > Considering the Results of Previous Audits and Attestation Engagements
6.10 The standard related to considering the results of previous audits and attestation engagements for attestation engagements performed in accordance with GAGAS is:
Auditors should consider the results of previous audits and attestation engagements and follow up on known significant findings and recommendations that directly relate to the subject matter or the assertion of the attestation engagement being undertaken.
6.11 Auditors should ask audited entity officials to identify previous financial audits, attestation engagements, performance audits, or other studies related to the subject matter or assertions of the attestation engagement being undertaken and to identify corrective actions taken to address significant findings and recommendations. 1 For example, an audit report on an entity’s computerized information systems may contain significant findings that could relate to the attestation engagement if the entity uses such systems to process information about the subject matter or contained in an assertion about the subject matter. Following up on known significant findings and recommendations identified in previous audits, attestation engagements, or studies can help auditors evaluate the subject matter or the assertion associated with the attestation engagement. Auditors should use professional judgment in determining (1) prior periods to be considered, (2) the level of work necessary to follow up on significant findings and recommendations that affect the attestation engagement, and (3) the effect on the risk assessment and attestation procedures in planning the current attestation engagement.
6.12 Providing continuing attention to significant findings and recommendations is important to ensure that the benefits of the auditors’ work are realized. Ultimately, the benefits of auditors’ work occur when management of the audited entity takes meaningful and effective corrective action in response to the auditors’ findings and recommendations. Management of the audited entity is responsible for resolving findings and recommendations directed to them and for having a process to track their status. If management of the audited entity does not have such a process, auditors may wish to establish their own process.
1Significant findings and recommendations are those matters that, if not corrected, could affect the results of the auditors’ work and the auditors’ conclusions and recommendations regarding those results.
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