Scope of Work - Financial Auditing Services~1.docx
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- Attached to
- Finacial Auditing Services State and local contract opportunity
- Solicitation number
- BRDCOM-S3343
- Issued by
- Nevada
About this file
This document is a Scope of Work for Financial Auditing Services for a state board, specifically in Nevada, outlining comprehensive annual independent financial audit requirements. The engagement mandates a complete financial audit of the board's fiscal year ending June 30, with a requirement to deliver audited financial statements and reports to the Board prior to November 15 each year. The audit will be conducted in multiple phases including planning, internal control evaluation, substantive testing, compliance procedures, information systems review, and reporting, with specific tasks such as confirming bank account balances, testing disbursements, verifying payroll, and assessing federal grant compliance if applicable.
The audit will utilize QuickBooks Online and Airtable platforms, with the auditor receiving read-only access to financial systems. Key deliverables include a written audit plan within 15 days of engagement, an interim control-deficiency memo if critical issues are discovered, a draft audit report by September 30, and a final audit report by November 15. The auditor must adhere to U.S. Generally Accepted Auditing Standards (GAAS), Government Auditing Standards (GAGAS), Uniform Guidance, and Nevada Revised Statutes. The primary objectives include determining financial statement accuracy, evaluating internal controls, assessing compliance with various standards, and providing recommendations to strengthen controls and improve operational efficiency.
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Text version
Scope of Work Requirements – Financial Auditing Services
1. Engagement Mandate
· Perform an annual independent financial audit of the Board’s fiscal year ending June 30 in accordance with Nevada statutes and applicable professional standards.
· Express an opinion on whether the Board’s financial statements present fairly, in all material respects, the financial position and results of operations.
· Deliver audited financial statements and report to the Board prior to November 15 of each year.
2. Applicable Standards
· U.S. Generally Accepted Auditing Standards (GAAS) issued by the AICPA.
· Government Auditing Standards (GAGAS) issued by the U.S. GAO (“Yellow Book”).
· Uniform Guidance (2 CFR Part 200, Subpart F), if federal grant expenditures exceed the single-audit threshold.
· Nevada Revised Statutes NRS 631 and Nevada Administrative Code NAC 631 pertaining to fiscal oversight.
3. Audit Objectives
1. Determine whether the Board’s financial statements are free of material misstatement, whether due to fraud or error.
2. Evaluate the design and operating effectiveness of internal controls over:
· Cash receipts and disbursements
· Payroll processing
· Licensing revenues and trust funds
· Purchasing, contracting, and travel expenditures
3. Assess compliance with:
· GASB pronouncements adopted by the Board
· State budgetary and procurement requirements
· Record-retention provisions and grant agreements
4. Provide recommendations that strengthen controls and improve operational efficiency.
Scope of Work Tasks
| Phase |
| Key Requirements |
| A. Planning & Risk Assessment |
| • Conduct entrance conference with Executive Director, Secretary-Treasurer, CPA, and Bookkeeper. |
• Obtain and review prior-year audit workpapers and management letter.
• Perform preliminary analytical procedures using current-year QuickBooks (QBO) trial balance and Airtable financial datasets.
• Prepare a detailed Prepared-By-Client (PBC) list and agree delivery timelines.
| B. Internal-Control Evaluation |
| • Document significant transaction cycles (cash, revenues, payroll, A/P, A/R, fixed assets). |
• Perform walkthroughs and test samples for key control activities identified in the Board’s accounting policy manual.
• Evaluate the integration controls between Airtable and QBO data flows.
| C. Substantive Testing |
| • Confirm 100 % of bank and investment account balances directly with financial institutions. |
• Test a statistically valid sample of disbursements (checks, ACH, wires) for proper authorization, support, account coding, and Board approval.
• Test licensing revenue completeness via reconciliation of Airtable license database to QBO receipts.
• Verify payroll amounts against State payroll system registers and Board-approved pay rates.
• Inspect fixed-asset additions, disposals, and calculate depreciation accuracy.
| D. Compliance & Single-Audit Procedures |
| • If applicable, perform major-program determination and test federal grant compliance requirements (allowable costs, reporting, sub-recipient monitoring). |
| E. Information-Systems Review (Read-Only) |
| • Assess logical access, change-management, and backup controls for QBO and Airtable environments. |
• Perform data-analytics queries for unusual transactions, duplicate payments, or outlier amounts.
| F. Reporting & Communication |
| • Hold periodic status meetings (bi-weekly during fieldwork) to discuss preliminary findings. |
• Deliver a draft audit report and management letter no later than 90 days after fiscal year-end.
• Conduct an exit conference with the Board’s Audit Committee and management.
• Issue the final audit report, including: – Independent Auditor’s Report (opinion) – Basic financial statements – Required Supplementary Information (RSI) – Yellow-Book findings and responses – Single-audit schedule of findings, if required.
| G. Follow-Up & Presentation |
| • Present audit results at a public Board meeting; discuss significant deficiencies, material weaknesses, and corrective-action plans. |
• Provide a written status update on prior-year findings resolution.
5. Collaboration & Data Access
· QuickBooks Online: Auditor will receive read-only accountant access for the audit period; export capabilities limited to trial balances, general ledgers, and supporting journals.
· Airtable: Auditor will be granted reviewer rights to the Financial Close, Vendor, and Fixed-Asset bases; PBC items will be exchanged through a designated “Audit Requests” table.
· Secure File Exchange: All workpapers and client documents will be transmitted via an encrypted portal that meets State cybersecurity requirements.
6. Deliverables & Deadlines
1. Written audit plan and PBC list – within 15 days of engagement execution.
2. Interim control-deficiency memo (if critical issues arise) – within 5 business days of discovery.
3. Draft audit report & management letter – by September 30.
4. Final audit report, bound PDF, and searchable workpaper index – by November 15.
7. Independence, Ethics, and Confidentiality
· Affirm auditor independence in accordance with AICPA Code of Professional Conduct and Yellow-Book Independence rules.
· Sign a confidentiality agreement covering all Board data, systems, and personnel information.
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