Recipients of grants from the Legal Services Corporation (LSC) are responsible for preparing annual financial statements and arranging for audits of those statements by Independent Public Accountants (IPAs). These audits are to be conducted in accordance with Government Auditing Standards promulgated by the Comptroller General of the United States, Office of Management and Budget (OMB) 2 CFR 200, Uniform Guidance (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards) Subpart F and the LSC OIG "Audit Guide for Recipients and Auditors (Audit Guide)."
The OIG performs a review to ensure audit reports comply with the standards and guidelines mentioned above. Based on the review, the report will be rated as:
- Acceptable. The report contains no quality issues or only minor quality issues that do not require corrective action for audit under review
- Acceptable with Deficiencies. The report contains quality deficiencies that should be brought to the attention of the auditor (and auditee, where appropriate for correction in future audits).
- Technically Deficient. The report contains quality deficiencies that may affect the reliability of the audit report, and which must be corrected in the audit report under review
- Unacceptable. The report contains quality deficiencies that require the auditor to conduct additional audit work to support the opinions in the report under review.