Wyo. Code R. 021-0003-11
General Agency, Board or Commission Rules
Chapter 11: General Auditing Rules and Procedures
Effective Date: 03/12/2014 to Current
Rule Type: Current Rules & Regulations
Reference Number: 021.0003.11.03122014
The rules governing the conduct of audits by the Department of Audit are adopted by authority of W.S. 9-2-2003(e) and (g)(ii).
(a) The rules govern the following audits performed by the Department of Audit:
(i) For the Department of Revenue; (ii) For the Department of Transportation; (iii) For the Office of State Lands and Investment; and
(iv) For the Office of Natural Resources Revenue of the United States Interior Department.
(b) To the extent not inconsistent with the express provisions of these rules, the Government Auditing Standards, 2011 Revision, published by the Comptroller General, United States General Accounting Office shall be used to supplement and guide the use and interpretation of these rules. When conducting audits of mineral production from federal or Indian lands by Cooperative Agreement with the Office of Natural Resources Revenue, the Code of Federal Regulations published by the Office of Natural Resources Revenue of the United States Department of Interior, 30 CFR Part 1217, shall be enforced as required by the Cooperative Agreement.
When an audit is to be conducted, the entity to be audited shall be contacted to establish the date and time when the audit will begin, the records and documents to be examined and their location and availability. The audited entity shall designate a contact person or representative with whom audit activities are be coordinated. The auditor in charge may review the audit plan with the audited entity to provide an understanding of audit procedures and objectives.
(a) Auditors shall be given free and open access, during regular business hours, to any and all books, logs, journals, records or documents of the audited entity which the auditors deem relevant and necessary to the satisfactory completion of the audit and the rendering of a knowledgeable opinion, judgment or recommendation concerning the audited entity. If any book, log, journal, document, record or information relevant and necessary to the audit is kept or maintained electronically, the audited entity shall provide such data or access to such data in electronic form unless some other form is requested by the auditors and mutually agreed to by the audited entity. Auditors shall also be given access to all personnel involved in the production of any records relevant to the audit, for discussion and explanation of the systems and operations which produce the records examined.
(b) The department may subpoena witnesses or documents as necessary for the audit, as authorized by W.S. 9-2-2003(g)(iv) or W.S. 9-1-506.
(c) If the records and documents defined in the engagement letter are not available to the auditors for commencement of the audit at the agreed time and place, or if additional records determined by the auditors to be necessary for conducting the audit are not made available within such time as the auditors may reasonably allow, the director of the department may apply to the attorney general for an action to obtain the records and for the assessment of costs or such other relief as may be appropriate because of the delay.
The auditors shall review and test the internal controls of the audited entity as necessary to determine the accuracy and credibility of the entity's records and accounting system. If computer processed data are an important and integral part of the audit, the audited entity shall allow the auditors to conduct such tests of the general and application controls of the computer system as necessary to determine the reliability of the data.
(a) Auditors may use sampling methods which are approved under generally accepted auditing standards to test the audited entity's accounting system and records. Based upon the results of the tests, the auditors, in consultation with the audit manager, shall determine whether to continue or terminate the audit.
(b) If the test results show that the audit should be continued, the auditors may conduct the audit by the use of approved sampling methods. If the auditors elect to use a sample projection, the audited entity will be informed and the sampling method used will be explained. Sampling means that a valid portion or percentage of accounts, invoices, purchase or sale documents, or other records representative of the time frame being audited, will be examined and the results will be projected for the total population from which the sample is drawn.
(c) When test results obtained during an audit to determine compliance with mineral production reporting and valuation requirements for severance tax or property tax show evidence of gross negligence by the audited entity, such evidence shall be evaluated by the director. The audited entity may request an informal conference with the director to consider the evidence. If the director determines there is evidence of gross negligence, the time period for the audit may be extended to prior years as provided by W.S. 39-14-108(b)(vi); 39-14-208(b)(vi); 39-14-308(b)(vi); 39-14-408(b)(vi); 39-14-508(b)(vi); 39-14-608(b)(vi); 39-14-708(b)(vi).