2011 Kentucky Revised Statutes CHAPTER 43 AUDITOR OF PUBLIC ACCOUNTS 43.073 Annual audit of school district entity by Auditor or private accountant -- Expenses -- Review of private audit by Auditor.
KY Rev Stat § 43.073 (1996 through Reg Sess) What's This?
43.073 Annual audit of school district entity by Auditor or private accountant -Expenses -- Review of private audit by Auditor.
(1)
(2)
(3)
The Auditor of Public Accounts shall be responsible for an annual audit of the
funds contained in each school district cooperative, school district consortium,
school district corporation, and any other entity formed by school districts in an
agreement made pursuant to KRS 65.210 to 65.300, with the cost of the audit to be
borne by the audited entity.
A school district cooperative, school district consortium, school district corporation,
or other entity formed by school districts in an agreement made pursuant to KRS
65.210 to 65.300 may employ a certified public accountant to audit the books,
accounts, and papers of the cooperative, consortium, corporation, or other entity in
lieu of the audit required by subsection (1) of this section, if the Auditor of Public
Accounts declines in writing to assume responsibility for performing the audit or
fails to respond in writing within thirty (30) days of receiving the cooperative's,
consortium's, corporation's, or other entity's written notice of its intent to employ a
certified public accountant to conduct the audit. The cooperative, consortium,
corporation, or other entity shall not enter into any contract with a certified public
accountant for an audit unless the Auditor of Public Accounts has declined in
writing to assume responsibility for performing the audit or has failed to respond
within thirty (30) days of receipt of a written request for an audit.
(a) Any contract with a certified public accountant entered into as a result of the
Auditor of Public Accounts either declining to assume responsibility of
performing the audit or failing to respond within thirty (30) days of receipt of
a written request for an audit shall specify the following:
1.
That the certified public accountant shall forward a copy of the audit
report and management letters to the Auditor of Public Accounts for
review;
2.
That the Auditor of Public Accounts shall have the right to review the
certified public accountant's work papers before and after the release of
the audit; and
3.
That after review of the certified public accountant's work papers, if
discrepancies are found, the Auditor of Public Accounts shall notify the
audited entity of the discrepancies. If the certified public accountant
does not correct these discrepancies prior to the release of the audit, the
Auditor of Public Accounts may conduct its own audit to verify the
findings of the certified public accountant's report.
(b) If an audit verifying the findings of the certified public accountant's report is
conducted by the Auditor of Public Accounts, the total audit expense incurred
by the audited entity shall be an allowable expenditure and shall be paid by the
audited entity to the Auditor of Public Accounts. If the audit conducted by the
Auditor of Public Accounts discloses discrepancies in the audit by the
certified public accountant, the findings of the Auditor of Public Accounts
shall be deemed official for all purposes.
Effective: July 14, 2000
History: Created 2000 Ky. Acts ch. 491, sec. 1, effective July 14, 2000.
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