Rural Water - Quarter 3, 2016 - 31


DEPARTMENT:
FINANCE

w

Audit Requirements
BY CLAUDETTE ATWOOD, NRWA CHIEF FINANCIAL OFFICER

What kind of audit

are you
required to have? It could be none at all
(thank your lucky stars), a compilation (the
simplest), a financial audit or the big one,
an A-133 audit, commonly known as a
single audit. Let's talk about each of these.
First, none at all. You are a lucky soul,
but there are downfalls to this. If you never
have an audit, can you, the preparer, or the
board, the user, really know if the financials
"present fairly, in all material respects,
the financial position of your entity"? It is
just good business sense to have an audit
conducted, and yes, it is very disruptive
to your schedule, but it offers a peace of
mind that the financials are presenting
correct information that you can make
good decisions on.

Second, the compilation. This is
assistance in presenting your financial
statements and the least expensive,
but there is no assurance that compiled
financial statements fairly present the
financial position of your entity. This is not
preferred by lenders or creditors. Under
the compilation, management will take
the responsibility for the preparation and
presentation of the financial statements.
The accountant will only compile the
financial statements but should have
industry-level experience and knowledge
of your entity. The accountant should
provide documentation that will have
the significant issues, communication
to management with regards to fraud
or illegal acts and a written report that

should accompany the compiled financial
statements. The report will state that the
statements are not audited or reviewed
and therefore there is not an opinion
expressed or any assurance provided that
the financial statements are in accordance
with a financial reporting framework. There
is no prior preparation other than making
sure all entries have been made for the
period that the accountant is compiling the
reports for.
Third, the financial audit. This audit
will have the auditor looking deep at your
company's financial situation, probing
accounting records, internal control
policies, cash holdings and other sensitive
financial areas. This type of audit is more
common with publicly-traded corporations
RURAL WATER

31



Table of Contents for the Digital Edition of Rural Water - Quarter 3, 2016

The Latest Drinking Water Innovations
Potable Reuse of Water: A View from Arizona
Getting the Public on Board with Your Potable Water Reuse Plan
Recapturing Revenue from Water Loss
Water Depletion and the Customer
Boardroom Courtesy
From the President
Finance: Audit Requirements
Technology: The New System that Uses Sound to Alleviate Water Shortage
Emergency Management: Creating a Drought Response Plan
A Day in the Life of a Circuit Rider
Regulatory Update
Throwing My Loop: An Old Familiar Tune
Index to Advertisers/ Advertisers.com
Rural Water - Quarter 3, 2016 - cover1
Rural Water - Quarter 3, 2016 - cover2
Rural Water - Quarter 3, 2016 - 3
Rural Water - Quarter 3, 2016 - 4
Rural Water - Quarter 3, 2016 - 5
Rural Water - Quarter 3, 2016 - 6
Rural Water - Quarter 3, 2016 - 7
Rural Water - Quarter 3, 2016 - 8
Rural Water - Quarter 3, 2016 - 9
Rural Water - Quarter 3, 2016 - 10
Rural Water - Quarter 3, 2016 - From the President
Rural Water - Quarter 3, 2016 - The Latest Drinking Water Innovations
Rural Water - Quarter 3, 2016 - 13
Rural Water - Quarter 3, 2016 - 14
Rural Water - Quarter 3, 2016 - 15
Rural Water - Quarter 3, 2016 - 16
Rural Water - Quarter 3, 2016 - 17
Rural Water - Quarter 3, 2016 - Potable Reuse of Water: A View from Arizona
Rural Water - Quarter 3, 2016 - 19
Rural Water - Quarter 3, 2016 - 20
Rural Water - Quarter 3, 2016 - 21
Rural Water - Quarter 3, 2016 - Getting the Public on Board with Your Potable Water Reuse Plan
Rural Water - Quarter 3, 2016 - 23
Rural Water - Quarter 3, 2016 - 24
Rural Water - Quarter 3, 2016 - 25
Rural Water - Quarter 3, 2016 - Recapturing Revenue from Water Loss
Rural Water - Quarter 3, 2016 - 27
Rural Water - Quarter 3, 2016 - 28
Rural Water - Quarter 3, 2016 - 29
Rural Water - Quarter 3, 2016 - 30
Rural Water - Quarter 3, 2016 - Finance: Audit Requirements
Rural Water - Quarter 3, 2016 - 32
Rural Water - Quarter 3, 2016 - 33
Rural Water - Quarter 3, 2016 - 34
Rural Water - Quarter 3, 2016 - Technology: The New System that Uses Sound to Alleviate Water Shortage
Rural Water - Quarter 3, 2016 - 36
Rural Water - Quarter 3, 2016 - Emergency Management: Creating a Drought Response Plan
Rural Water - Quarter 3, 2016 - 38
Rural Water - Quarter 3, 2016 - 39
Rural Water - Quarter 3, 2016 - A Day in the Life of a Circuit Rider
Rural Water - Quarter 3, 2016 - 41
Rural Water - Quarter 3, 2016 - 42
Rural Water - Quarter 3, 2016 - Water Depletion and the Customer
Rural Water - Quarter 3, 2016 - 44
Rural Water - Quarter 3, 2016 - Boardroom Courtesy
Rural Water - Quarter 3, 2016 - 46
Rural Water - Quarter 3, 2016 - 47
Rural Water - Quarter 3, 2016 - Regulatory Update
Rural Water - Quarter 3, 2016 - 49
Rural Water - Quarter 3, 2016 - 50
Rural Water - Quarter 3, 2016 - Throwing My Loop: An Old Familiar Tune
Rural Water - Quarter 3, 2016 - 52
Rural Water - Quarter 3, 2016 - 53
Rural Water - Quarter 3, 2016 - Index to Advertisers/ Advertisers.com
Rural Water - Quarter 3, 2016 - 55
Rural Water - Quarter 3, 2016 - 56
Rural Water - Quarter 3, 2016 - 57
Rural Water - Quarter 3, 2016 - 58
Rural Water - Quarter 3, 2016 - cover3
Rural Water - Quarter 3, 2016 - cover4
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