What three things are required from auditors according to the FMFIA?

What three things are required from auditors according to the FMFIA?

• A. SoA, Report on Internal Controls, and Report on Compliance w/Laws and Regs
• B. Audit Opinion, Management Letter, and Financial Forecast
• C. Independent Verification of all transactions
• D. Compliance with Budget Laws Only

Answer: (A)

The main idea is that FMFIA requires a formal reporting package that shows management’s own assessment plus independent auditor verification. Management must issue a Statement of Assurance about the effectiveness of internal controls and the adequacy of the financial management system. The independent auditor provides two reports: one evaluating the internal controls over financial reporting, and another confirming compliance with applicable laws and regulations. Together, these three items fulfill FMFIA’s reporting requirements, giving a complete view of financial integrity. Other options include items not mandated by FMFIA, such as financial forecasts or nonessential documents, so they don’t fit the required package.

The main idea is that FMFIA requires a formal reporting package that shows management’s own assessment plus independent auditor verification. Management must issue a Statement of Assurance about the effectiveness of internal controls and the adequacy of the financial management system. The independent auditor provides two reports: one evaluating the internal controls over financial reporting, and another confirming compliance with applicable laws and regulations. Together, these three items fulfill FMFIA’s reporting requirements, giving a complete view of financial integrity. Other options include items not mandated by FMFIA, such as financial forecasts or nonessential documents, so they don’t fit the required package.