Contrast of CAFR: City of Austin vs Raleigh | Financial

School: Kennesaw State University - Course: ACC 410 - Subject: Accounting

FINANCIAL STATEMENTS AND AUDIT REPORT REVIEW2 Contrast of CAFR of City of Austin and Raleigh Every state, locality, and municipality is required to create a CAFR to explain how they spent allocated funds and incurred expenses. It should be noted that the CAFR is a collection of governmental financial statements that must adhere to the GASB's accounting standards (Granof et al., 2016). To alleviate misunderstanding in government funding reports, the complexity of the CAFR should be harmonized. The CAFR is divided into three sections: introduction, financial, and statistics. It also incorporates financial data from business authorities and financing accounting (Granof et al., 2016). The publishing technique, audit and budget information, and kind of audit report would all be compared in the CAFR of Raleigh and Austin, as well as the presence or absence of an internal audit function. CAFR Publication Method: The CAFR publication methods in Raleigh and Austin are comparable. They adhere to the GASB standards, which are divided into three components. The CAFR is introduced in the opening portion with a statement from the county and municipal leaders, correspondingly (James, 2015). However, there are only slight variations in the financial statement's presentation. Austin's financial statements are provided in a straightforward manner. There is no breakdown of funding sources or how they are used. The financial component of the City of Raleigh's CAFR, on the other hand, is extensive. Within the financial, there is a part for accounting funds and a portion for entrepreneurial funds. Audit and budget information in the CAFR:All CAFRs include an audited report to authenticate the auditor. The CAFR contains information regarding the audit and budget in

FINANCIAL STATEMENTS AND AUDIT REPORT REVIEW3 accordance with GASB standards (Granof, Khumawala, Smith, & Calabrese, 2016). The CAFRs of Raleigh and Austin, on the other hand, vary just little. Austin's CAFR has data from internal audit, while Raleigh's contains data from the external auditor or auditor general. The budget information is quite obvious since the CAFR of Raleigh and Austin are identical (Granof et al., 2016). Type of Audit Report Issued:The type of audit report issued is identical. Unqualified opinion is the sort of audit report that is issued. The kind of data shows that the Raleigh and Austin CAFRs are free of misrepresentation (Granof & Wardlow, 2010). The financial reports were prepared in accordance with GASB standards. Internal audit function inside the government entity's presence or absence:the city of Raleigh does not have an internal audit function. Within the city of Raleigh, however, there is an internal auditing role. The county of Austin, on the other hand, has an internal audit function.