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4 <br />The reports on internal control and compliance will each include a statement that the report is intended for <br />the information and use of the audit committee, management, specific legislative or regulatory bodies, <br />federal awarding agencies, and if applicable, pass-through entities. <br />Any additional services that you may request, and that we agree to provide, will be the subject of sepazate <br />written arrangements. <br />I will lead the engagement and will be responsible for assuring the overall quality, value, and timeliness <br />of our services to you. <br />YOUR EXPECTATIONS <br />As part of our planning process, we will discuss with you your expectations of Cherry, Bekaert & Holland, <br />L.L.P., your concerns about your local government, your views on risks facing you, any relationship issues <br />with Cherry, Bekaert & Holland, L.L.P., and specific engagement arrangements and timing. Our services <br />plan, which includes our audit plan, is designed to provide a foundation far an effective, efficient, and <br />quality-focused approach to accomplish the engagement objectives and meet, and/or exceed, your <br />expectations. Our service plan will be reviewed with you periodically and will serve as a benchmark <br />against which you will be able to measure our performance. <br />LIMITATIONS OF THE AUDITING PROCESS <br />Our audit will include procedures designed to obtain reasonable, rather than absolute, assurance of <br />detecting misstatements due to errors or fraud that are material to the general purpose financial statements. <br />As you are aware, however, there aze inherent limitations in the auditing process. For example, audits are <br />based on the concept of selective testing of the data being examined and are, therefore, subject to the <br />limitation that material misstatements due to errors or fraud, if they exist, may not be detected. Also, an <br />audit is not designed to detect error or fraud that is immaterial to the general purpose financial statements. <br />As required by the Single Audit Act Amendments of 1996 and OMB Circulaz A-133 (and the State Single <br />Audit Implementation Act), our audit will include tests of transactions related to major federal and state <br />awazd programs for compliance with applicable laws and regulations and the provisions of contracts and <br />grant agreements. Because an audit is designed to provide reasonable, but not absolute assurance and <br />because we will not perform a detailed examination of all transactions, there is a risk that material errors, <br />fraud, other illegal acts, or noncompliance may exist and not be detected by us. In addition, an audit is not <br />designed to detect immaterial errors, fraud, or other illegal acts or illegal acts that do not have a direct <br />effect on the general purpose financial statements or to major programs. It should be recognized that our <br />audit generally provides no assurance that illegal acts will be detected, and only reasonable assurance that <br />illegal acts having a direct and material effect an the determination of fmancial statement amounts will be <br />detected. However, we will inform you with respect to material errors and fraud, or illegal acts that come <br />to our attention during the course of our audit. We will include such matters in the reports as required for <br />a Single Audit. <br />