The State Auditor's Office is not issuing Requests for Proposals at the present time. We encourage firms interested in contracting to check back again.
Audit Contracting with the Utah State Auditor's Office
Various state agencies are audited by independent CPA firms in order to assist the State Auditor’s Office in completing the State’s annual financial and compliance audit in a timely manner.
The independent audits are performed under contract with the State Auditor’s Office (SAO).
Decision to Contract for an Audit
The decision to contract for an audit is based on various factors including:
- Deadlines for issuance of the audit report.
- Availability of State Auditor's Office staff to meet these deadlines.
- Professional expertise required for the audit (i.e. specialized industries such as Health Care).
- Other agency requests, as needed.
When a decision has been made to contract for an audit, the following steps are followed:
- The State Auditor's Office issues a Request for Proposal (RFP) inviting CPA firms that have expressed interest in performing state audits to submit a bid proposal.
- Bid proposals are received and evaluated by the State Auditor's Office and the state agency to be audited.
- The State Auditor's Office consults with the state agency to determine the best bid proposals based on cost, industry experience, CPA firm expertise and qualifications, and prior experience with the CPA firm.
- CPA firms are notified of acceptance / rejection of their bids.
- Contract for services is prepared by the State Auditor's Office and signed by the State Auditor's Office, CPA firm, auditee, and oversight entity (if applicable).
To qualify to perform audits of State agencies under contract with the State Auditor's Office, the CPA firm must:
- Be properly licensed for public practice as a CPA firm in the State of Utah.
- Be independent of the State agency in accordance with Rule 101 of the AICPA Code of Professional Conduct.
- Meet the requirements of Government Auditing Standards, published by the U.S. General Accountability Office, including, continuing professional education, independence, internal quality control, and external triennial peer review.
- Agree to notify the State Auditor's Office of changes of partner, manager, supervisor, or other senior personnel assigned to the engagement.
- Agree to not accept other auditing or non-auditing work with the agency without the approval of the State Auditor's Office.
- Agree to not discriminate against any individual because of race, color, religion, age, sex, disability, or national origin, and that these shall not be a factor in consideration for employment, selection for training, promotion, transfer, recruitment, rates of pay, or other forms of compensation, demotion, or separation.
- Agree to make all working papers available to the State Auditor's Office and provide copies of the working papers as requested by the State Auditor's Office.
Audits contracted for by the State Auditor's Office must be performed in accordance with generally accepted auditing standards established by the AICPA, and Government Auditing Standards established by the U.S. General Accountability Office.
Other engagements associated with the above audits may be included in the contract, such as NCAA Agreed-upon Procedures, Bond compliance reports, and Attestation engagements.
These engagements must be performed in accordance with other engagement standards established by the AICPA and when applicable Government Auditing Standards.
The fact that an agency is currently being audited by an independent CPA firm is not a guarantee that it will continue to be. In addition, all contracts may be cancelled at will by either the State Auditor's Office or the CPA firm upon 30 days written notice. Generally, audit contracts are for 5 year periods, however, they may be extended for a short period if agreed to by the State Auditor's Office and the CPA firm.
The State Auditor's Office is not currently issuing Requests for Proposals. We encourage you to check back again.
Other State agencies which receive audits from independent CPA firms that are not under contract with the SAO include:
- Utah Retirement System
- Public Employees Health Program
- University of Utah Hospital
- Workers Compensation Fund
- Utah Housing Corporation
- Department of Agriculture - Beef Council & Utah Dairy Commission
- Various College and University foundations, associations, and other component units
All CPA firms performing audit work for State agencies under the direction of the State Auditor's Office must sign a standard contract for service. The contract specifies the audit requirements, including reporting due date, as well as the audit fee.
Except for unusual circumstances, the State Auditor's Office policy is to change audit firms after the expiration of the 5 year contract.