review of generally accepted auditing standards

Obtaining an understanding and testing certain internal controls and processes.Verifying account balances, transactions and business cycles.Some of the procedures completed by Ivan when performing an audit are: Ivan performs his audit in accordance with Canadian generally accepted auditing standards.

However, certain regulated industries have specific guidelines as to which standard must be applied.īy completing an audit, Ivan provides a high level of assurance that the financial statements (or financial information) present fairly, in all material respects, the financial position and the financial performance of an organization.

The CICA allows privately owned businesses to adopt Accounting Standards for Private Enterprises (“ASPE”) or IFRS and non-government not-for-profit organizations to adopt Accounting Standards for Not-for-Profit Organizations or IFRS. The Canadian Institute of Chartered Accountants (“CICA”) and Accounting Standards Board recently adopted International Financial Reporting Standards (“IFRS”) as the financial statement reporting framework for all Canadian Publicly Accountable Enterprises. The results of the auditors’ review disclosed no instances of noncompliance or other matters required to be reported under Government Auditing Standards.Today’s accounting and auditing standards have become more complex than ever before. The audit did not identify any deficiency in internal controls over financial reporting that is considered a material weakness. KPMG concluded that the combined financial statements present fairly, in all material respects, the financial position of the Southwestern Federal Power System as of September 30, 2021, and 2020, and the results of its operations and cash flows for the year then ended in accordance with United States generally accepted accounting principles.Īs part of this audit, auditors also considered the Southwestern Federal Power System’s internal controls over financial reporting and tested for compliance with certain provisions of laws, regulations, contracts, and grant agreements that could have a direct and material effect on the combined financial statements. This review disclosed no instances where KPMG did not comply, in all material respects, with generally accepted government auditing standards. The Office of Inspector General monitored audit progress and reviewed the audit report and related documentation.

KPMG is responsible for expressing an opinion on the Southwestern Federal Power System’s financial statements and reporting on applicable internal controls and compliance with laws and regulations. The attached report presents the results of the independent certified public accountants’ audit of the Southwestern Federal Power System’s combined balance sheets, as of September 30, 2021, and 2020, and the related combined statements of revenues and expenses, changes in capitalization, and cash flows for the years then ended. To fulfill the Office of Inspector General’s audit responsibilities, we contracted with the independent public accounting firm of KPMG LLP (KPMG) to conduct the audit, subject to our review.

Review of generally accepted auditing standards