Accounting

Evaluate Auditing Processes
As you prepare your paper for this assignment, consider the following issues:

The following audit report was rendered on the financial statements of the Town of Maywood:

You have audited the accompanying general purpose financial statements (but not the accompanying combined statement and the individual fund statements and supplemental statistical data) of the Town of Maywood, (State), as of June 30, 20×1, and for the year then ended. To guarantee the accuracy of these statements, you have interviewed all responsible officials and reviewed the financial activities of the Town and its accounting procedures. Based on these audit procedures, you hereby certify the accuracy of the financial statements audited, and that they accurately represent the financial position of this Town, its results of operations, and its cash flows. Although you did not audit the combined and individual fund statements and supplemental statistical data, a review of this information indicates it is also accurate.

Our audit covered only the Town of Maywood and its financial statements. These statements do not include those of several organizations with which the Town has a statutory or financial relationship. The Town has concluded that inclusion of the financial information of these other organizations would cause the Town?s financial statements to be misleading. You concur with this position.

Include responses to the following in your paper:

Evaluate the extent to which this audit conforms to that required by generally accepted auditing standards (GAAS). What GAAS requirements have been omitted or otherwise not complied with?

Why should persons interested in public administration and persons interested in working as accountants for governmental units have an understanding of audit objectives and standards?

Describe the budgetary accounts used in federal agency accounting and the flow of budgetary authority through those accounts.

What is the role of cost drivers in an activity-based cost system? Explain how an analysis of cost drivers can be useful in identifying inefficient activities and the cause(s) of inefficiency.

Discuss the implications of GASB 34 and government-wide financial reporting on the budgeting process in a city.

Support your paper with a minimum of five (5) scholarly resources. In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included.