Arkansas Code
Subchapter 4 - Arkansas Legislative Audit
§ 10-4-425. Format of private audit reports

(a) To provide for a consistent and understandable financial format, all financial audit reports prepared by certified public accountants in private practice or public accountants of entities of the state or political subdivisions of the state shall be in substantially the same form as reports prepared by the Legislative Auditor for a similar governmental entity.
(b)
(1) The audit reports shall present the financial information and comments in a similar format as audit reports of the Legislative Auditor.
(2) The reports shall include coverage of all applicable laws that relate to the operation of the governmental unit, including coverage of purchasing, bonding, revenue, and expenditures with comments on any apparent violation of applicable state or local legislative acts, codes, rules, or regulations.

(c)
(1) The Legislative Joint Auditing Committee shall develop a system that allows an auditor in private practice to present a proposed format for preparing a given audit report on one (1) of the named governmental units for the review of the Legislative Joint Auditing Committee.
(2) If the Legislative Joint Auditing Committee finds that the audit report format is similar to the audit reports prepared by the Legislative Auditor, then the Legislative Joint Auditing Committee shall approve the format of the audit on the named governmental units.
(3) If the private auditor's format does not meet the approval of the Legislative Joint Auditing Committee, then the Legislative Joint Auditing Committee may authorize and direct that the audit shall be conducted by the staff of the Legislative Auditor.

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