Should I accept an audit engagement?

[harriscpa]

I am a sole practioner with no employees. I do bookkeeping and tax mostly. I have been offered an audit of a school - it would be a compliance audit for the department of education - I believe this would require additional education and a peer review - are these requirements very hard to fulfill?- is it worth it for one audit. thanks linda

[shively]

I am quite sure you are right about the CE requirements and it quite possibly could involve peer review. My suggestion is that you call, or better yet write, tothe Board of Accountancy and find out what is required. Chances are, unless there are significant other opportunities out there, you will have a hard time in justifying the engagement. Another matter, your E & O carrier would also have an interest in the type of work you are doing as well as it's risk factors. Hope this helps a little.

[mecpa]

Hello Linda,

I do 7 Department of Education audits, some of which I've done for 10 years, besides having to have at least 40 hours annually of audit CPE, i.e. Nonprofit update, etc..., and get peer reviewed, the Department of Education has very strict reporting requirements that need to be included as part of the audit as supplemental information, my recommendation would be to not take on just one Department of Education audit - it's not going to pay off for the fee.

If you have any questions you can call me at 916-972-8297

Michelle Elder