Auditee responsibilities under Uniform Guidance § 200.511 establishes reporting requirements related to follow-up of prior year audit findings and corrective action for all current year audit findings. Effective in November 2015, auditees are required to prepare a summary schedule of prior audit findings, and a corrective action plan for current year audit findings. The summary schedule of prior audit findings must report all prior audit findings; however, the extent of information to include in the summary schedule depends on the status of each of the prior year audit findings. For example, if the prior audit finding was corrected, the auditee only needs to list the finding and state that corrective action was taken.
For all current year audit findings the auditee must prepare a corrective action plan to address each finding reported in the current year auditor’s report. The corrective action plan must be a separate document from the auditor’s schedule of findings and questioned costs. For each finding the auditee concurs with, the plan must include the action planned to correct the finding, the anticipated completion date, and the name(s) of the contact person(s) responsible for the action taken. If the auditee does not concur with the finding or does not believe corrective action is necessary, the plan must provide an explanation and specific reasons for their determination.
Aaron Funk, CPA