Orange County NC Website
Browse       Search
18 <br /> Orange County - 2020 Engagement Letter <br /> March 25, 2020 <br /> Page 6 <br /> With regard to the electronic dissemination of audited financial statements, including financial <br /> statements published electronically on your website, you understand that electronic sites are a <br /> means to distribute information and, therefore, we are not required to read the information <br /> contained in these sites or to consider the consistency of other information in the electronic site <br /> with the original document. <br /> You agree to assume all management responsibilities relating to the financial statements, schedule <br /> of expenditures of federal and state awards, related notes, and any other nonaudit services we <br /> provide. You will be required to acknowledge in the management representation letter our <br /> assistance with preparation of the financial statements, schedule of expenditures of federal and <br /> state awards, and related notes and that you have reviewed and approved the financial statements, <br /> schedule of expenditures of federal and state awards, and related notes prior to their issuance and <br /> have accepted responsibility for them. You agree to oversee the nonaudit services by designating <br /> an individual, preferably from senior management, who possesses suitable skill, knowledge, or <br /> experience; evaluate the adequacy and results of those services; and accept responsibility for them. <br /> Audit Procedures—General <br /> An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in <br /> the financial statements; therefore, our audit will involve judgment about the number of <br /> transactions to be examined and the areas to be tested. An audit also includes evaluating the <br /> appropriateness of accounting policies used and the reasonableness of significant accounting <br /> estimates made by management, as well as evaluating the overall presentation of the financial <br /> statements. We will plan and perform the audit to obtain reasonable rather than absolute assurance <br /> about whether the financial statements are free of material misstatement, whether from(1) errors, <br /> (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or <br /> governmental regulations that are attributable to the government or to acts by management or <br /> employees acting on behalf of the government. Because the determination of abuse is subjective, <br /> Government Auditing Standards do not expect auditors to provide reasonable assurance of <br /> detecting abuse. <br /> Because of the inherent limitations of an audit, combined with the inherent limitations of internal <br /> control, and because we will not perform a detailed examination of all transactions, there is a risk <br /> that material misstatements or noncompliance may exist and not be detected by us, even though <br /> the audit is properly planned and performed in accordance with U.S. generally accepted auditing <br /> standards and Government Auditing Standards. In addition, an audit is not designed to detect <br /> immaterial misstatements or violations of laws or governmental regulations that do not have a <br /> direct and material effect on the financial statements or major programs. However,we will inform <br /> the appropriate level of management of any material errors, any fraudulent financial reporting or <br /> misappropriation of assets that come to our attention. We will also inform the appropriate level of <br /> management of any violations of laws or governmental regulations that come to our attention, <br /> unless clearly inconsequential, and of any material abuse that comes to our attention. We will <br /> include such matters in the reports required for a Single Audit. Our responsibility as auditors is <br /> limited to the period covered by our audit and does not extend to any later periods for which we <br /> are not engaged as auditors. <br />