OSCPA staff report
The Ohio Auditor’s office next week is hosting an event that – among other things – will help Independent Public Accountants understand the state’s “Hinkle System” for filing unaudited financial statements.
The system is an outgrowth of AOS Bulletin 2015 – 007, which dealt with common issues noted in IPA report reviews and auditing in compliance.
Brad Blake, CPA, chief of quality assurance for the Ohio Auditor’s Center of Audit Excellence, said the Hinkle System was developed to offer a better way for entities to meet the legal requirement most of them face to file financial statements.
“In the past an IPA would go to an entity and ask for unaudited statements,” Blake said. “They would go through those and might have audit adjustments. And then they would decide if those adjustments were a result of some kind of significant weakness or deficiency.”
Now, the IPA’s clients first go into the Hinkle System to enter unaudited financial statements and notes.
“The IPAs can then start by going to the Hinkle System,” Blake said. “So, we want the Hinkle information to be in effect the final word from their clients on what they believe their unaudited information should look like.”
The Hinkle System can then be used to determine financial health indicators for the entity and look for signs of future fiscal distress.
But first, the IPAs will need to do their work by going through the unaudited information and making adjustments, many of which are tied to different deadlines and requirements.
Next week’s Combined IPA Conference in Columbus will feature a session that will bring clarity to IPAs about those requirements, as well as any specific issues they are facing.
Ami Mayne, CPA, director of audit administration at the Ohio Auditor of State’s Office, will discuss “Common Issues Noted - IPA Report Reviews and Auditing in Compliance with AOS Bulletin 2015-007.”
Attendees will learn what kind of entities are required to file, what the deadlines are, who is responsible for making adjustments, how to use the Hinkle System, how to report findings and more.
“They will learn what our expectations are of the IPAs in terms of citing and not citing, and what kind of audit information to keep,” Blake said. “They will also have the opportunity to ask questions: ‘Here’s the unique scenario for my client.’ Coming to this session and hearing that from Ami, it really gives them an opportunity to learn how to handle their own situation.”
2018 Combined IPA Conference