Orange County NC Website
Browse       Search
5 <br /> i <br /> The Board of County Commissioners <br /> Orange County, North Carolina <br /> Page Two <br /> However, because of the characteristics of irregularities, particularly those involving forgery and <br /> collusion, a properly designed and executed audit may not detect such items. Therefore, an audit <br /> conducted in accordance with generally accepted auditing standards is designed to obtain <br /> reasonable, rather than absolute, assurance about the financial statements. An audit includes <br /> examining, on a test basis, evidence supporting the amounts and disclosures in the financial <br /> statements. An audit also includes assessing the accounting principles used and significant <br /> estimates made by management, as well as evaluating the overall financial statement presentation. <br /> The objective of our audit is the expression of an opinion on the County's financial statements. <br /> Our ability to express that opinion, and the wording of our opinion, will, of course, be dependent <br /> on the facts and circumstances at the date of our report. If our auditors' report requires <br /> modification, the reasons therefore will be discussed with you prior to its issuance. <br /> Management's Responsibility <br /> We direct your attention to the fact that the financial statements are the responsibility of <br /> management. In this regard, management has the responsibility for designing effective internal <br /> controls, for properly recording transactions in the accounting records, for making appropriate <br /> accounting estimates, for safeguarding assets, and for the overall accuracy of the financial <br /> statements. <br /> Other Communications Arising from the Audit <br /> In connection with the planning and the performance of our audit, generally accepted auditing <br /> standards require that we communicate to the Board of County Commissioners, to the extent that <br /> they come to our attention, irregularities and illegal acts that are clearly not inconsequential, and <br /> reportable conditions. Reportable conditions are significant deficiencies in the design or operation <br /> of the internal control structure that could adversely affect the County's ability to record, process, <br /> summarize, and report financial data consistent with the assertions of management in the financial <br /> statements. <br /> We may also have other comments for management on matters we have observed and possible <br /> ways to improve the efficiency of your operations or other recommendations concerning the <br /> internal control structure. <br />