OTHER-2022-018-Contract to Audit Accounts

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r; i LGC =205 CONTRACT TO AUDIT ACCOUNTS Rev. 11 /2021 3 : If an entity is determined to be a component of another government as defined by the group audit standards , the entity' s auditor shall make a good faith effort to comply in a timely manner with the requests of the group auditor in accordance with AU - 6 § 600 . 41 - § 600 . 42 . 4 . This contract contemplates an unmodified opinion being rendered . If during the process of conducting the audit , the Auditor determines that it will not be possible to render an unmodified opinion on the financial statements of the unit , the Auditor shall contact the LGC Staff to discuss the circumstances leading to that conclusion as soon as is practical and before the final report is issued . The audit shall include such tests of the C accounting records and such other auditing procedures as are considered by the Auditor to be necessary in the circumstances . Any limitations or restrictions in scope which would lead to a qualification should be fully explained in an attachment to this contract. 5 . If this audit engagement is subject to the standards for audit as defined in Government Auditing Standards , 2018 revision , issued by the Comptroller General of the United States , then by accepting this engagement , the Auditor warrants that he/she has met the requirements for a peer review and continuing education as specified in Government Auditing Standards . The Auditor agrees to provide a copy of the most recent peer review report to the Governmental Unit(s) and the Secretary of the LGC prior to the execution of an I audit contract . Subsequent submissions of the report are required only upon report expiration or upon auditor' s receipt of an updated peer review report . If the audit firm received a peer review rating other than pass , the Auditor shall not contract with the Governmental Unit (s) without first contacting the Secretary of the LGC for a peer review analysis that may result in additional contractual requirements . If the audit engagement is not subject to Government Accounting Standards or if financial statements are not prepared in accordance with U . S . generally accepted accounting principles ( GAAP) and fail to include all disclosures required by GAAP , the Auditor shall provide an explanation as to why in an attachment to this contract or in an amendment . 6 . It is agreed that time is of the essence in this contract . All audits are to be performed and the report of audit submitted to LGC Staff within four months of fiscal year end . If it becomes necessary to amend the audit fee or the date that the audit report will be submitted to the LGC , an amended contract along with a written explanation of the change shall be submitted to the Secretary of the LGC for approval . i, 7 . It is agreed that GAAS include a review of the Governmental Unit' s ( Units ' ) systems of internal control and accounting as same relate to accountability of funds and adherence to budget and law requirements applicable thereto ; that the Auditor shall make a written report , which may or may not be a part of the written F report of audit , to the Governing Board setting forth his/her findings , together with his recommendations for c r improvement . That written report shall include all matters defined as " significant deficiencies and material weaknesses " in AU - C 265 of the AICPA Professional Standards (Clarified) . The Auditor shall file a copy of that report with the Secretary of the LGC . 8 . All local government and public authority contracts for audit or audit- related work require the approval of the Secretary of the LGC . This includes annual or special audits , agreed upon procedures related to internal controls , bookkeeping or other assistance necessary to prepare the Governmental Unit' s ( Units ' ) records for audit , financial statement preparation , any finance- related investigations , or any other audit- related work in the State of North Carolina . Approval is not required on contracts and invoices for system improvements and similar services of a non- auditing nature. 9 . Invoices for services rendered under these contracts shall not be paid by the Governmental Unit(s) until the invoice has been approved by the Secretary of the LGC . (This also includes any progress billings . ) [G . S . 159- 34 and 115C-447] All invoices for Audit work shall be submitted in PDF format to the Secretary of the LGC for approval . The invoice marked ` approved 'with approval date shall be returned to Page 2