Agenda - 06-26-1996 - VIII-C - Laserfiche WebLink

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7 May 31, 1996 The Board of County Commissioners Page 4 An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements and the schedule of federal and state financial assistance; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. Also, we will plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. However, because of the concept of reasonable assurance and because we will not perform a detailed examination of all transactions, there is a risk that material errors, irregularities, or illegal acts, including fraud or defalcations,may exist and not be detected by us. Management is also responsible for compliance with laws, regulations, contracts, and grants, and for establishing and maintaining an internal control structure to assure such compliance with federal and state financial assistance program requirements. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we will perform tests of Orange County's compliance with certain provisions of laws,regulations, contracts and grants. However, our objective is not to provide an opinion on overall compliance with such provisions. As part of our audit of compliance with the general requirements of federal financial assistance programs and specific requirements of major federal and state programs, we will obtain an understanding of the organization's internal control structure related to administering major federal and state financial assistance programs and we will assess control risk as required by OMB Circular A-128 and the State Single Audit Implementation Act for the purpose of establishing the nature, timing, and extent of auditing procedures necessary for expressing our opinion concerning compliance with laws and regulations related to major federal,and state financial assistance programs and for expressing positive assurance as to items tested and negative assurance as to items not tested for general compliance requirements. As required by OMB Circular A-128,our audit will also include tests of transactions related to federal assistance programs for compliance with applicable laws and regulations. However, because of the concept of reasonable assurance and because we will not perform a detailed examination of all transactions,there is a risk that material errors, irregularities, or illegal acts,including fraud or defalcations,may exist and not be detected by us. We will advise you,however,of any matters of that nature that come to our attention, and will include such matters in the reports required for an audit in accordance with OMB Circular A-128. Our responsibility as auditors is limited to the period covered by our audit and does not extend to matters that arise during any later periods for which we have not been engaged as auditors and for which we have performed no auditing procedures.