Agenda - 05-19-1992 - Laserfiche WebLink

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