Assignment 1: Financial Statement / Audit Report Review
Due Week 4 and worth 240 points
Select a local government in your state and review the financial statements and audit report for the county or municipality. The financial statements of the government selected should have at least three funds.
Write a three to four (3-4) page paper in which you: 1. Analyze the method of accounting used for the general fund and all other funds in existence by the government. Evaluate the reasoning for the use of the method of accounting for each of the funds as required by GAASB. 2. Assess the application and compliance of GASB Statement 34, Basic Financial Statements and Management Decisions and Analysis for State and Local Governments to each of the funds. 3. Evaluate managementâ€™s discussion and analysis (MD&A). In your evaluation, analyze the significant information in the MD&A and how the information contributed to the clarity of the financial statements. From your analysis of financial statements, identify and analyze information that should be included in the statements. 4. Determine whether the entityâ€™s financial position improved or deteriorated during the reporting period. Speculate on the causes from your review of the financial statements.