Ed. Code, § 14504

(a) (1) To determine the practicability and effectiveness of the audits and audit guide, the Controller shall, on an annual basis, review and monitor the audit reports performed by independent auditors.

(2) (A) The Controller shall determine whether audit reports are in conformance with the reporting provisions of Section 14503 and shall notify each local educational agency, the responsible chartering authority if applicable, the responsible county superintendent of schools, the Superintendent, the Department of Finance, and the auditor within six months of the audit report due date or the audit report issue date, whichever is later, regarding each determination.

(B) The local educational agency, the chartering authority, the county superintendent of schools, or the Superintendent contracting for the financial and compliance audit shall include a statement that will provide the Controller access to audit working papers.

(b) Commencing with the 2027–28 fiscal year, the Controller’s desk review checklist that is used to determine whether audit reports are in conformance with the reporting requirements of Section 14503 shall be published on or before October 31 of each year, or 30 days following the release of the annual federal compliance supplement for Single Audit Act audits, whichever is later. The Controller’s desk review checklist shall focus on elements of reporting that are material, whether qualitative or quantitative, and areas with a higher risk of error or misstatement.