GOVERNANCE: Quality Control Review of the Independent Audit of Amtrak’s Consolidated Financial Statements for Fiscal Year Ended 2016
Amtrak (the company) contracted with the independent certified public accounting firm of Ernst & Young LLP to audit its consolidated financial statements as of September 30, 2016, and for the year then ended, and to provide a report on internal control over financial reporting and on compliance and other matters. Because the company receives federal assistance, it must obtain an audit performed in accordance with generally accepted government auditing standards.
As authorized by the Inspector General Act of 1978, we monitored the audit activities of Ernst & Young to help ensure audit quality and compliance with auditing standards. Our review disclosed no instances in which Ernst & Young did not comply, in all material respects, with generally accepted government auditing standards. The key aspects of the Ernst & Young reports are discussed below.
In its audit of the company’s consolidated financial statements, Ernst & Young concluded, in its report dated January 27, 2017, that the consolidated financial statements presented fairly, in all material respects, the consolidated financial position of the National Railroad Passenger Corporation and subsidiaries at September 30, 2016, and the consolidated results of their operations and their cash flows for the year then ended in conformity with U.S. generally accepted accounting principles (GAAP). Ernst & Young’s report also emphasized that, without receipt of federal government funding, the company will not be able to continue in its current form, and significant operating changes, restructurings, or bankruptcy might occur.