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LIMITATIONS OF THE AUDITING PROCESS
<br />Our audit will include procedures designed to obtain reasonable assurance of detecting 6
<br />misstatements due to errors or fraud that are material to the financial statements, Absoltate
<br />assurance is not attainable because of the nature of audit evidence and the characteristics of fraud..
<br />For example, audits pertormed in accordance with GAAS are based on the concept of selective
<br />testing of the data being examined and are, therefore, subject to the limitation that material
<br />misstatements due to errors or fraud, if they exist, may not be detected, Also, an audit is not
<br />designed to detect matters that are immaterial to the financial statements. In addition, an audit
<br />conducted in accordance with GAAS does not include procedures specifically designed to detect
<br />illegal acts having an indirect effect (e.g., violations of fraud and abuse statutes that result in fines or
<br />penalties being imposed on the County) on the financial statements.
<br />As required by the Single Audit Act Amendments of 1996, OMB CircularA-133, and the State Single
<br />Audit Implementation Act, our audit will include tests of transactions related to major federal and
<br />State award programs for compliance with applicable laws and regulations and the provisions of
<br />contracts and grant agreements, Because an audit is designed to provide reasonable, but not
<br />absolute assurance and because we will not perform a detailed examination of all transactions,
<br />there is a risk that material errors, fraud, other illegal acts, or noncompliance may exist and not be
<br />detected by us. In addition, an audit is not designed to detect immaterial errors, fraud, or other illegal
<br />acts or illegal acts that do not have a direct effect on the basic financial statements or to major
<br />programs. It should be recognized that our audit generally provides no assurance that illegal acts will
<br />be detected, and only reasonable assurance that illegal acts having a direct and material effect on
<br />the determination of financial statement amounts will be detected, However, we will inform you with
<br />respect to material errors and fraud, or illegal acts that come to our attention during the course of
<br />our audit. We will include such matters in the reports as required for a Single Audit,
<br />If, for any reason, we are unable to complete the audit, or are unable to form or have not formed an
<br />opinion on the basic financial statements, we may decline to express an opinion or decline to issue a
<br />report as a result of the engagement.. In this case, our firm will inform in writing the parties to the
<br />contract..
<br />RESPONSIBILITIES AS TO INTERNAL CONTROLS
<br />As a part of our audit, we will considerthe County's internal control structure, as required by auditing
<br />standards generally accepted in the United States of America and GovemmentAuditing Standards,
<br />sufficient to plan the audit and to determine the nature, timing, and extent of auditing procedures
<br />necessary for expressing our opinion concerning the basic financial statements, You recognize that
<br />the basic financial statements and the establishment and maintenance of an effective intemal
<br />control over financial reporting are the responsibility of management, You also recognize that
<br />management is responsible for identifying and ensuring that the County complies with the laws and
<br />regulations applicable to its activities. Appropriate supervisory review procedures are necessary to
<br />provide reasonable assurance that adopted policies and prescribed procedures are adhered to and
<br />to identify enors, fraud, or illegal acts. An audit is not designed to provide assurance on internal
<br />control. As part of our consideration of the County's internal control structure, however, we will
<br />inform you of reportable conditions and other matters that come to our attention that represent
<br />significant deficiencies in the design or operation of the internal control structure, if any, as required
<br />by OMB Circular A-133 and the State Single Audit Implementation Act.
<br />As required by OMB Circular A-133 and the State Single Audit Implementation Act, we will perform
<br />tests of controls to evaluate the effectiveness of the design and operation of controls that we
<br />consider relevant to preventing or detecting material noncompliance with compliance requirements,
<br />applicable to each major federal and State award program,.
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