Compliance with Laws

Audit Step:

1. Interview responsible agency personnel to determine their awareness of the applicable laws, rules, and regulations and whether they know of any non-compliance with them. Also, determine the related internal control procedures in place to ensure compliance.

2. Perform tests of internal controls put in place by management to ensure compliance with these laws, rules and regulations, as needed.

3. Make recommendations concerning the nature, extent and timing of substantive tests to be performed to detect (or determine the extent of) abuse or illegal acts.  If no further tests are necessary, so indicate.

4. Note any known abuses or illegal acts.  Also, assess the risk of other abuses or illegal acts that could occur.  (Low, moderate, or high).  If conditions are identified indicating abuse or illegal acts, these matters should be brought to the attention of the Audit Director.

Purpose:

To evaluate whether the agency is complying with all applicable laws and the risk that fraud or abuse is occurring.