Auditing

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Search the internet for the official website of your local city government. If you cannot find your city, select your state.

After reviewing this website, locate the latest comprehensive annual financial report (CAFR) available on the website. For example, both the City of Sacramento and the City of Phoenix have their most recent CAFRs online within an accounting/financial section. Use the financial statements you locate to answer the following questions:

  • How does the audit opinion given to this city by its independent auditors differ from the audit opinion rendered on the financial statements for a for-profit business?
  • A reconciliation should be presented to explain the difference between the net changes in fund balances for the governmental funds (fund financial statements) and the change in net position for the governmental activities (government-wide financial statements). What were several of the largest reasons for the difference?
  • Did the CAFR contain all required components, and what was your impression of how the information was reported?
  • What are some significant differences you see between the report you just reviewed and the for-profit report you reviewed in Module Four?

Discuss whether you saw the same differences in your report.

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