BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1218
                                                                  Page  1

          Date of Hearing:   May 1, 2013

           ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
                                 Jim Frazier, Chair
                     AB 1218 (Gray) - As Amended:  April 16, 2013
           
          SUBJECT  :   California State Auditor: duties

           SUMMARY  :   Authorizes the California State Auditor (CSA), after  
          performing audits, to conduct follow-up audit work related to  
          the audits' original findings and recommendations. 

           EXISTING LAW  :   Requires the CSA to conduct audits as directed  
          by statute and those requested by the Joint Legislative Audit  
          Committee. 

           FISCAL EFFECT  :   Unknown

           COMMENTS  :   This bill, which is sponsored by the CSA, would  
          authorize the CSA to conduct follow-up work related to original  
          audit findings and recommendations.  While the CSA conducts  
          follow-up work under current authority granted by the Government  
          Code, this bill would clarify that authority by making it  
          explicit.

          Government Code requires the CSA to comply with Government  
          Auditing Standards (GAS) published by the Comptroller General of  
          the United States and standards published by the American  
          Institute of Certified Public Accountants.  Generally, these  
          standards have historically required audit entities to conduct  
          follow-up work.  However, the CSA noted that a recent change to  
          GAS language no longer explicitly states a follow-up  
          requirement, but instead implies it.

          The CSA is seeking to clearly express this follow-up authority  
          in its governing statutes since the current authority is based  
          on standards that could change.  According to the CSA, this  
          change is sought so entities subject to follow-up work clearly  
          understand the authority and grant the CSA appropriate access.    
           
            

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 








                                                                 AB 1218
                                                                  Page  2

           
          None on file

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Scott Herbstman / A. & A.R. / (916)  
          319-3600