Orange County NC Website
5 <br />Apri126, 1999 <br />Orange County, North Carolina <br />Page 2 <br />Audit of General Purpose Financial Statements <br />We will audit the County's general purpose financial statements as of and for the year ending <br />June 30, 1999. In addition, we will audit the County's compliance with laws and regulations <br />related to federal and state awards; and report on the County's Schedule of Expenditures of <br />Federal and State Awards. <br />Our audits will be conducted in accordance with Government Auditing Standards, issued by <br />the Comptroller General of the United States, Office of Management and Budget ("OMB's <br />Circular A-133, Audits of States, Local Governments and Non profit Institutions, and the State <br />Single Audit Implementation Act. <br />We will plan and perform our audit to obtain reasonable assurance about whether the general <br />purpose financial statements are free of material misstatement, whether caused by error or <br />fraud, and we will perform tests of the County's compliance with certain provisions of laws, <br />regulations, contracts and grants. However, because of the characteristics of fraud, particularly <br />those involving concealment and falsified documentation (including forgery), a properly <br />planned and performed audit may not detect a material misstatement. Therefore, an audit <br />conducted in accordance with generally accepted auditing standards is designed to obtain <br />reasonable, rather than absolute, assurance that the general purpose financial statements are <br />free of material misstatement. An audit is not designed to detect error or fraud that is <br />immaterial to the general purpose financial statements or to detect immaterial instances of <br />noncompliance. <br />As part of our audit, we will consider the County's internal control and assess control risk, as <br />required by generally accepted auditing standards and Government Auditing Standards, for the <br />purpose of establishing a basis for determining the nature, timing, and extent of auditing <br />procedures necessary for expressing an opinion on the general purpose financial statements, <br />and not to provide assurance on the County's internal control or to identify reportable <br />conditions. <br />An audit includes examining, on a test basis, evidence supporting the amounts and disclosures <br />in the financial statements; therefore, our audit will involve judgment about the number of <br />transactions to be examined and the areas to be tested. An audit also includes assessing the <br />accounting principles used and significant estimates made by management, as well as <br />evaluating the overall financial statement presentation. <br />