CPA (Certified Public Accountant) Audit Quality: A Framework for Procuring Audit Services

摘要

The report describes the results of a third phase review of the quality of audits performed by certified public accountants (CPAS). This phase, determines whether there was a relationship between the procurement process used by state and local entities-defined as governmental units or programs that receive federal funds-to obtain audit services and the quality of the audits that resulted. The review shows that entities are almost three times as likely to receive an audit that meets professional standards when they have an effective procurement process compared to when they do not. Entities are much more likely to have an effective procurement process if financial officials-people with specialized knowledge of governmental accounting and auditing techniques-are involved in planning and implementing the procurement process.