30 ILCS 5/1-13.5

(30 ILCS 5/1-13.5)

Sec. 1-13.5. Financial audit. "Financial audit" means a post audit primarily concerned with providing reasonable assurance about whether financial statements are presented fairly in all material respects in conformity with generally accepted accounting principles (GAAP), or with a comprehensive basis of accounting other than GAAP. Other objectives of financial audits, which provide for different levels of assurance and entail various scopes of work, may include, as appropriate:

(1) providing special reports for specified elements, accounts, or items of a financial statement;

(2) reviewing interim financial information;

(3) issuing letters for underwriters and certain other requesting parties;

(4) reporting on the processing of transactions by service organizations; and

(5) auditing compliance with regulations relating to federal award expenditures and other governmental financial assistance in conjunction with or as a byproduct of a financial statement audit.

Financial audits are to be performed in accordance with generally accepted auditing standards issued by the American Institute of Certified Public Accountants (AICPA) for field work and reporting, generally accepted government auditing standards (GAGAS), and AICPA Statements on Auditing Standards (SAS) current at the time the audit is commenced.

(Source: P.A. 93-630, eff. 12-23-03.)