Audit Rotation Requirements for Annual Audits of LEAs

The auditor-rotation requirements specified in California Education Code section 41020 (f)(2) apply to auditors who conduct LEA audits. This section of the Education Code makes it unlawful for a public accounting firm to provide audits services to the LEA if the lead audit partner, or coordinating audit partner responsible for the auditor for reviewing the audit, has performed audit services for the LEA in each of the six previous fiscal years. Consequently, a different audit firm and/or audit partners must be used in the seventh year, unless a waiver is obtained from the Education Audit Appeals Panel.

• Audit Rotation Requirements for Annual Audits of LEAs