About the Office of Audit

The LSC OIG Office of Audit conducts audits and other agile oversight reviews of LSC’s programs and grantees to promote (1) the efficient and effective use of LSC funds and (2) compliance with statutory and regulatory requirements. The audit Office also monitors the results of the grantee financial statement audit process performed by Independent Public Accountants (IPAs) and oversees the IPA Quality Control Review program to ensure the quality of work performed by IPAs. Federal appropriations law requires all 131 LSC grantees to undergo an annual financial statement audit, and requires LSC OIG to oversee this process and issue appropriate guidance to grantees and IPAs. 

The Office of Audit’s key activities include: 

  • Audits of LSC and LSC Grantees. The audits cover a wide range of topics, including internal controls, financial aand other operations, compliance with LSC regulations and guidance, and alignment with good practices. Audit results are communicated through audit reports that document specific deficiencies and provide recommendations for corrective action. The audit reports are published on the OIG website.
  • Oversight of the Annual Audit of LSC’s Financial Statements. LSC’s financial statement audit is conducted by an independent certified public accounting (CPA) firm under contract with the OIG. The Office of Audit competitively procures and contracts the CPA firm and monitors the work conducted by its auditors. The office conducts monitoring efforts in accordance with the requirements outlined in the Financial Audit Manual, jointly authored by the U.S. Government Accountability Office and the Council of the Inspectors General on Integrity and Efficiency.
  • Referrals to LSC Management. Based on our reviews of grantees' financial statement audit reports and results of performance audits, the Office of Audit refers findings, recommendations, and questionned costs to LSC and works closely with LSC management to ensure that corrective actions are implemented by grantees.  Referrals typically relate to internal control deficiencies or questioned costs.
  • Oversight of the IPA Quality Control Review Program. To ensure the quality of work performed by IPA firms conducting required annual audits of LSC grantees, those audits are subject to review to determine whether the work was conducted in accordance with applicable standards and guidance issued by our office. The OIG competitively procures an independent CPA firm to conduct the reviews and to issue Quality Control Review reports, discussing the results with the grantee’s IPA and the OIG. We also typically issue an annual compendium report describing common findings and recommendations to promote rigor and efficiency in the conduct of the audits.
  • Issuance of IPA guidance. We issue guidance that describes how to conduct annual financial statement audits of LSC grantees, including how to conduct testing of key internal controls and compliance with LSC regulatory requirements.
  • Engagement with LSC, its Grantees, and IPAs. The Office of Audit engages in a variety of outreach and proactive educational efforts intended to help LSC and its grantees be aware of and mitigate the impact of key risks and challenges. To do this we issue products such as advisories, memoranda, compendium reports, video presentations, trainings sessions, or other agile work products.

Audit Reports and Other Work Products

The Office of Audit conducts periodic reviews of LSC management’s and grantees' programs and operations. The results of each review are published in a public report. 

The Office of Audit occasionally develops other products for LSC and its grantees, such as compendium reports, advisories, and memoranda. 

View the Latest Audit Reports