How does the municipality prepare for auditing a capital project’s funds?

How does the municipality prepare for auditing a capital project’s funds?

• A. Maintain informal notes of project activity without formal reconciliation.
• B. Close the project accounting once phase is completed.
• C. Delay documentation until the auditor requests it.
• D. Track project expenditures, maintain grant documentation, ensure proper capitalization in government-wide statements, and reconcile with project fund balances.

Answer: (D)