Internal Control Reporting Differences among Public and Governmental Auditors: The Case of City and County Circular A-133 Audits

Posted: 27 Jan 2017

See all articles by Dennis M. Lopez

Dennis M. Lopez

University of Texas at San Antonio

Gary F. Peters

University of Arkansas at Fayetteville

Date Written: October 2010

Abstract

We investigate potential differences in audit reporting outcomes between Circular A-133 audits performed by governmental auditors vs. those performed by certified public accounting (CPA) firms. Specifically, we investigate the association between auditor type and the likelihood of auditor-disclosed internal control concerns. We employ a cross-sectional sample of 13,386 single audit reports of US cities and counties during 2004–2006. In contrast to prior literature, the results indicate that in the post-Sarbanes–Oxley environment, CPA firms appear more likely to issue audit reports that identify internal control concerns than are governmental auditors in the context of Circular A-133 audits. The differences are more pronounced for larger CPA firms.

Keywords: Circular A-133, Governmental Auditors, Internal Controls

JEL Classification: M40, M41, M42, M48, M49

Suggested Citation

Lopez, Dennis M. and Peters, Gary F., Internal Control Reporting Differences among Public and Governmental Auditors: The Case of City and County Circular A-133 Audits (October 2010). Journal of Accounting and Public Policy, Vol. 29, No. 5, 2010. Available at SSRN: https://ssrn.com/abstract=2906509

Dennis M. Lopez (Contact Author)

University of Texas at San Antonio ( email )

One UTSA Circle
San Antonio, TX 78249
United States
210-458-4320 (Phone)
210-458-4322 (Fax)

HOME PAGE: http://business.utsa.edu/

Gary F. Peters

University of Arkansas at Fayetteville ( email )

Sam M. Walton College of Business
Department of Accounting
Fayetteville, AR 72701

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