Agenda - 05-08-2002 - 8c - Laserfiche WebLink

Browse Search

4 LIMITATIONS OF TEM AUDITING PROCESS Our audit will include procedures designed to obtain reasonable, rather than absolute, assurance of detecting musrtarements due to contra or fraud that are material to the basic financial statement. As you are are,however,there are iMerent limitations in the auditing process. For example,audits are based on the concept of selective mating of the dam being examined and are,therefore,subject in the limitations that material misstatements due to am=or fraud.if they exist,may not be detected. Alan,an audit is not designed to detect error or fiuud that is Maintained to to basic general purpose financial statements. As required by the Single Audit Act Amendments of 1996,OMB Circular A-133, and the State Single Audit Implementation Act, our audit will include reps of transxtiow related to major federal and Stare award programs for compliance with applicable laws and regulation and the provisions of contracts and great agreements. Because an audit is designed to provide reasonable, but rat absolute esetasnce and because we will not perform a derailed examination of all transactions,there is ansb drat material crross, freug,other illegal im ofmncompliatro mayexieaMnot he detectedby as. Inaddition,anvedi[isrot designed to detect ivwncial errors, Freud,or other illegal acs or illegal houldacts that do not have a rived effect on the basic financial statements or ct awll b programs. It should be able assurance that our audit generally provides dirctasdMateial elect ndwillbedeected,and aNyreasonablentmnce that illegal acts having a direct and material effect on doe pertom uteri l of financial areremmt amounts will be detected However,we will iNbrm you with respect to material ertms and fraud,or illegal acts that come a Single Arlon during doe comae ofaw audit. We will include such mattersNthe repore asrequired for a Single Audit. IF,forany reason,we are unable to complete ale audit,or are unable to 6rm or have rat formed an opnion on the basic Financial statements,we may decline to express an opinion or decline to issue a report as a result of the en§aganent. RESPONSIBILITIES AS TO INTERNAL CONTROLS As a pan of our about we will consider the County's internal control structure, as required by auditing standards generally accepted in the United Stares of America Cavemment Auditing Srandardr, the provisions of Ohfil Circular A-133,and the State Single Audit Implementation Act,sulAcientM plan the audit and to deremdns the nature,timing anti extent of auditing procedures necessary for expressing our opinion concerning the basic fioarrial statements.You recognize that the basic financial statement and Me establiument and maivtmance of an effective Manuel control over financial reporting are the responsibility of management. You also recognize that mavegemerrt is responsible for identifying and counting that the entity complies with the laws and regulations applicable to its activities. Appropriate supervisory review procedures are necessary to provide reasonable assureace that adopted policies and prescribed procedures are adhered to ads to identify circus and fraud or illegal acs. An audit is not designed to provide assurance on fi temN control. As part of our consideration of the County's trrtevN control structure, however, we will inform you of modern that come to our attention that represent significant deficiencies in the design or operation of the internal control smrmre,if any,as required by OMB Circular A. and ale State Single Audit Implementation Act.