SF 2978

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/21/2018 09:14am

A bill for an act
relating to state government; specifying requirements for state auditor's review of
certain audits conducted by CPA firms; amending Minnesota Statutes 2017
Supplement, section 6.481, subdivision 3.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2017 Supplement, section 6.481, subdivision 3, is amended
to read:

Subd. 3.

CPA firm audit.

new text begin (a) new text end A county audit performed by a CPA firm must meet the
standards and be in a form meeting recognized industry auditing standards. The state auditor
may require additional information from the CPA firm if the state auditor determines that
is in the public interest, but the state auditor must accept the audit unless the state auditor
determines the audit or its form does not meet recognized industry auditing standards. The
state auditor may make additional examinations as the auditor determines to be in the public
interest.

new text begin (b) When the state auditor requires additional information from the CPA firm or makes
additional examinations that the state auditor determines to be in the public interest, the
state auditor must afford counties and CPA firms an opportunity to respond to potential
findings, conclusions, or questions, as follows:
new text end

new text begin (1) at least 30 days before beginning a review for work performed by a certified public
accountant firm licensed in chapter 326A, the state auditor must notify the county and CPA
firm that the state auditor will be conducting a review and must identify the type of review
the state auditor will perform;
new text end

new text begin (2) throughout the state auditor's review, the auditor shall allow the county and the CPA
firm at least 30 days to respond to any request by the auditor for documents or other
information;
new text end

new text begin (3) the state auditor must provide the CPA firm with a draft report of the state auditor's
findings at least 30 days before issuing a final report;
new text end

new text begin (4) at least 20 days before issuing a final report, the state auditor must hold a formal exit
conference with the CPA firm to discuss the findings in the state auditor's draft report;
new text end

new text begin (5) the state auditor shall make changes to the draft report if the state auditor determines
changes are warranted as a result of information provided by the CPA firm during the state
auditor's review; and
new text end

new text begin (6) the state auditor's final report must include any written responses provided by the
CPA firm.
new text end