An audit is an in-depth review of an entity’s performance to analyze the administration of funds and to examine the status of projects in terms of intent and expectations. The U.S. Department of Labor regularly conducts audits in three specific areas:
- compliance with laws and regulations
- economy and the efficiency of operations
- efficiency of achieving results
TYPES OF AUDITS:
The U.S. Department of Labor conducts and supervises the following audits:
- financial audits – an in-depth analysis of financial statements to determine whether or not those statements fairly represent the financial reporting
- performance audits – examine the program effectiveness and results, internal controls, and legal compliance of the entity
- attestation engagements – review specific content matters or management cases
AUDIT SELECTION:
According to the U.S. Department of Labor, audits will be prioritized according to:
- statutory and regulatory requirements
- the sensitivity of an organization, activity, or function (including susceptibility to fraud, waste, and abuse)
- new or changed conditions
- the dollar magnitude and the federal resources involved
- results of prior audits, reviews, and evaluations
- agency and Congressional requests
Author(s)
Stuart J. Oberman, Esq.
Stuart J. Oberman is the founder and President of Oberman Law Firm. Mr. Oberman graduated from Urbana University and received his law degree from John Marshall Law School. Mr. Oberman has been practicing law for over 30 years, and before going into private practice, Mr. Oberman was in-house counsel for a Fortune 500 Company.
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