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

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8 ' May 31, 1996 The Board of County Commissioners Page 5 Similarly, in performing our audit we will be aware of the possibility that illegal acts may have occurred. However, it should be recognized that our audit provides no assurance that illegal acts generally will be detected, and only reasonable assurance that illegal acts having a direct and material effect on the determination of general purpose financial statements amounts will be detected. Our auditing procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. It is our understanding that you will provide us with the basic information required for our audit and that you are responsible for the accuracy and completeness of that information. It also is our understanding that you are responsible for implementing the requirements of applicable GASB Statements effective this fiscal year. We will advise you about accounting principles and their application and will assist in the preparation of your general purpose financial statements,but the responsibility for the general purpose financial statements remains with you. This responsibility includes the maintenance of adequate records and related internal control structure policies and procedures, the selection and application of appropriate accounting principles, and the safeguarding of assets. We understand that your employees will type all cash or other confirmations that we request and will locate any invoices selected by us for testing. As required by Government Auditing Standards, our report on our tests of compliance with applicable laws and regulations related to our audit of the general purpose financial statements will contain a statement of positive assurance on those items that were tested for compliance,negative assurance on those items not tested, and a description of all material instances of noncompliance. As required by OMB Circular A-128 and the State Single Audit Implementation Act, our report on compliance will contain our opinion on Orange County's compliance,in all material respects,with the laws and regulations that apply to its major federal and state financial assistance programs. With regard to transactions selected from nonmajor programs and with our procedures related to general requirements of federal financial assistance,our report on compliance will contain a statement of positive and negative assurance, as discussed above.