CAFRs.edit

School: Kennesaw State University - Course: ENG 201 - Subject: Accounting

1.Compare and contrast the comprehensive annual financial report (CAFR) of the selected local government entity with the city of Austin report. In your comparison, include: a. Publication method of the CAFR When comparing the comprehensive annual financial reports (CAFR) of Austin and Alamance County, it is clear that these financial reports provide vast and unique financial data. Certain accounting standards established by the Government Accounting Standard Board are taken into consideration in order to make such reports public. Both the financial reports for Austin and Alamance follow the publishing style established by the Government Accounting Standards Board. Financial reports for the two local governments are separated into distinct divisions, as may be seen in detail. An introductory, financial, and statistical elements are included in this section. Warm welcomes are written in the opening section in honor of the organization to which the report is delivered. Following some welcoming words, some information about the reporting entity is provided. Furthermore, the economy prognosis is presented so that readers may grasp the state of the economy and government. The detailed data about money and other assets and liabilities is stated with a specific quantity in the financial and statistical portions of reports. b. Audit and budget information in the CAFR By comparing the financial statements of Austin and Alamance, it has been proven beyond a shadow of a doubt that the CAFR reports are based on a specific technique for providing budget and audit information. According to the Austin report, the financial information has been audited by a specific entity, certified Public Accountants Deloitte & Touche LLP. Cobb, Ezekiel, Loy & Company, P.A., on the other hand, audits Alamance financial statements in accordance with general auditing standards. Furthermore, a look at the local government's budget method reveals that the Austin municipal budget is linked to an effective fiscal responsibility approach. The government uses this strategy to reduce expenditure while maintaining a high-income level. Austin also follows a conservative budgeting approach, which has been linked to positive outcomes in terms of spending money on productive projects. On the other side, the budget of Alamance is balanced by creating new major initiatives related to social services. The debt service for the bond repayments was also raised. c. The type of audit report issued Both Austin and Alamance received the revised audit report. d.Existence or non-existence of an internal audit function within the government entity When looking at the Austin financial report, it is clear that it is audited internally. This report's credibility has been verified by an internal audit. City administration has played a role in establishing, maintaining, and implementing an appropriate framework in accordance with GAAP. However, the Alamance report also reveals the existence of an internal control structure that allows organizational entities to examine financial figures in order to eradicate any flaws in the reports.