Agenda - 05-16-2006-5i - Laserfiche WebLink

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I(v Planning the Review for the Firm's Accounting and Auditing Practice Applicable to Non- SECIssuers To plan the review of Cherry Bekaert & Holland L.L,P., we obtained an understanding of (1) the nature and extent of the firm's accounting and auditing practice, and (2) the design of the firm's system of quality control sufficient to assess the inherent and control risks implicit in its practice. Inherent risks were assessed by obtaining an understanding of the firm's practice, such as the industries of its clients and other factors of complexity in serving those clients, and the organization of the firm's personnel into practice units, Control risks were assessed by obtaining an understanding of the design of the fine's system of quality control, including its audit methodology, azid monitoring procedures. Assessing contro] risk is the process of evaluating the effectiveness of the reviewed Firm's system of qua]ty control in preventing the performance of engagements drat do not comply with professional standards. Performing the Review for the Firm's accounting and Auditing Practice Applicable to Non- SEC Issuers Based on our assessment of the combined level of inherent and control risks, we identified practice units and selected engagements within those units to test for compliance with the firm's system of quality control. The engagements selected far review included engagements performed under the Government Auditing Standards, multi-office audits, and audits of Employee Benefit Plans. The engagements selected for review represented across-section of the firm's accounting and auditing practce with emphasis on higher-risk engagements. The engagement reviews included examining working paper files and reports and interviewing engagement personnel, The scope of the peer review also included examining selected administrative and personnel files to determine compliance with the firm's policies and procedures for the elements of quality control pertaining to independence, integrity, and objectivity; personnel management; and acceptance and continuance of clients and engagements, Prior to concluding the review, we reassessed the adequacy of scope and conducted a meeting with firm management to discuss our findings and recommendations.