Illinois auditor audit firm wants to get more than $20M from CPA company
The Illinois Auditor’s Office (IAO) is asking a California-based consulting firm for up to $20 million in compensation for the services it provided to the Illinois Department of Financial Institutions (IDF) during the 2016 state audit.
The request, which was made public on Thursday, comes as IDF and the Illinois General Assembly are preparing to work on a final budget proposal to be submitted by July.
The IDF, however, has not yet announced its final proposal.
The audit also asked for reimbursement for its services as well as for legal fees.
“The IDF was not able to secure a contract with the firm as it was unable to meet its due diligence requirements,” the request said.
The IDA and ILO both declined to comment on the request, but a spokesperson for the IDA said in a statement: “As this matter is under investigation, we are not prepared to discuss the matter further.”
The Illinois audit found that the IDF had used the same software for the audit and that it had not followed the appropriate procedures to obtain the documents from the agency.
The audit found problems with the IDC software, including the fact that it was used to audit the bank’s data, which is considered confidential.
This is not the first time the IDB has come under fire for using software to audit its records.
In 2017, the Illinois State Senate passed a bill that required the IDBs software to be audited by a third party, and the bill has since been stalled in the state house.
In June, the IDIB also released a report that detailed the problems the agency faced with the auditing software it used for its annual audit, which had not been properly audited.