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Audit Process Overview: Fiscal 2012 Second Quarter Post-Payment Audits

Post-payment audits are conducted by The Expenditure Audit section of the Comptroller’s Statewide Fiscal Services department.

Audit objectives

The primary objectives of a post-payment audit are to:

Comptroller’s office responsibilities/Supporting statute

A state agency may request the Comptroller of Public Accounts (Comptroller’s office) to pay a claim against the agency only by submitting the appropriate payment voucher to the Comptroller’s office.

Texas Government Code, Sections 404.046, 404.069 (Vernon 2005), 2103.003, 2103.0035, 2103.004 (Vernon 2008).

State law prohibits the Comptroller’s office from paying a claim against a state agency unless the Comptroller’s office audits the corresponding voucher.

Texas Government Code, Sections 403.071(a) (Vernon Supp. 2010), 403.078 (Vernon 2005), 2103.004(a)(3) (Vernon 2008).

State law allows the Comptroller’s office to audit a payment voucher before or after the Comptroller’s office makes a payment in response to that voucher.

Texas Government Code, Section 403.071(g)-(h) (Vernon Supp. 2010).

In addition, state law authorizes the Comptroller’s office to conduct pre-payment or post-payment audits on a sample basis.

Texas Government Code, Sections 403.011(a)(13), 403.079 (Vernon 2005), 2155.324 (Vernon 2008).

Methodology

Field Work

Each auditor in the expenditure audit section is required to approach the field work phase of each audit with an appropriate level of professional skepticism based upon the results of the initial planning procedures.

If an auditor suspects during an audit that fraud, defalcations, or intentional misstatement of the facts has occurred, the auditor will meet with his or her supervisor or the Statewide Fiscal Services manager, or both, to decide what course of action or additional procedures would be appropriate.

Reporting

Each auditor audits the payment vouchers included in a sample according to established policies and procedures. The audit findings are reported to the audited agency in the form of a report.

The audit report:

Each auditor: