The Financial Audit Division focuses primarily on state government. The division conducts an annual Statewide Audit to assess the state's major financial operations and determine whether the state's financial statements comply with generally accepted accounting principles.
The division also conducts 40 to 50 financial audits each year that focus on individual agencies and other organizations in the executive and judicial branches of state government. In addition, the division periodically audits three metropolitan agencies and several “semi-state” organizations. Overall, the division has jurisdiction to audit approximately 180 departments, agencies, and other organizations.
Almost all of its work is scheduled, but each year the division also conducts several unscheduled “special reviews” in response to allegations that state resources were misused. When evidence of misuse of state resources is found, it is reported to the Attorney General and the appropriate county attorney, as well as to the Legislative Audit Commission.
The division is under the direction of a Deputy Legislative Auditor, who supervises a staff of approximately 40 auditors. Most are CPAs, and several are also CISAs (certified information systems auditors).
The Financial Audit Division performs audits in accordance with generally accepted government audit standards. These standards require that the division maintain an appropriate internal quality control system and undergo an external peer review every three years. The division complies with the requirement for an external review by participating in the peer review program administered by the National State Auditors Association. The peer review report for the period June 1, 2011 , through May 31, 2012, concluded that the division’s quality control system “…has been suitably designed and was complied with during the period.”