AZ SB1409

Requires charter school audits to follow a standard format that includes detailed information on assets, liabilities, revenues, expenditures, and related party expenses.

Mandates that audits be conducted by auditors located in Arizona who demonstrate expertise in state laws and are on an acceptable auditor list maintained and updated annually by the state board for charter schools.

Requires audits to be completed individually for each charter school separate from any larger entity, though a consolidated audit may also be prepared collating the required data.

Requires audit reports to be numerically identical to IRS Form 990 and associated annual financial reports, with any inconsistencies explained in the audit along with specific remediation plans.