Orange County NC Website
Browse       Search
6 <br />June 4, 1998 <br />The Board of County Commissioners <br />Page 3 <br />As part of our audit of compliance with the requirements of major federal programs, we will <br />obtain an understanding of the County's internal control related to administering major federal <br />programs and we will assess risk as required by OMB Circular A -133 for the purpose of <br />establishing the nature, timing, and extent of auditing procedures necessary for expressing an <br />opinion concerning compliance with laws and regulations related to major federal award <br />programs. <br />As required by OMB Circular A -133, our audit of compliance will also include tests of <br />transactions related to federal award programs for compliance with applicable laws and <br />regulations. However, because of the concept of reasonable assurance and because we will not <br />perform a detailed examination of all transactions, there is a risk that material errors, fraud or <br />illegal acts may exist and not be detected by us. We will advise you, however, of any matters <br />of that nature that come to our attention, and will include such matters in the reports required <br />for an audit in accordance with OMB Circular A -133. Our responsibility as auditors is limited <br />to the period covered by our audit and does not extend to matters that arise during any <br />subsequent periods for which we have not been engaged as auditors or for which we have <br />performed no substantive auditing procedures. <br />The objective of an audit carried out in accordance with the standards described above is (1) <br />the expression of an opinion concerning whether the general purpose financial statements <br />present fairly, in all material respects the financial position, results of operations, and cash <br />flows of the proprietary fund type of the County in conformity with generally accepted <br />accounting principles, (2) reporting on the internal control relevant to an audit of the general <br />purpose financial statements, (3) reporting on the County's compliance with laws and <br />regulations, which could have a material effect on the general purpose financial statements, (4) <br />reporting on whether the schedule of expenditures of federal awards is fairly stated in all <br />material respects when considered in relation to the basic general purpose financial statements <br />taken as a whole, (5) the reporting on our determination as to whether the County's internal <br />control provides reasonable assurance of compliance with federal laws and other laws and <br />regulations, (6) the expression of an opinion on whether the County complied with specific <br />terms and conditions of its major federal programs, and (7) preparation of a schedule of <br />findings and questioned costs to summarize the results of the audit in accordance with the <br />requirements of OMB Circular A -133. <br />