OTHER-2024-035-Local government commission Audit contract-Contract to Audit Accounts

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LGC -205 CONTRACT TO AUDIT ACCOUNTS Rev. 11 /2023 the report was not submitted timely for State low- risk auditee status . Please refer to " Discussion of Single Audits in North Carolina " on the LGC's website for more information . If the audit and Auditor communication are found in this review to be substandard , the results of the review may be forwarded to the North Carolina State Board of CPA Examiners ( NC State Board ) , 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 - §600m420 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 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 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 Auditing 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 . 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 report of audit , to the Governing Board setting forth his/her findings , together with his recommendations for 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 . For GAAS or Government Auditing Standards audits , if an auditor issues an AU - C § 260 report, commonly referred to as " Governance Letter, " LGC staff does not require the report to be submitted unless the auditor cites significant findings or issues from the audit , as defined in AU -C §260 . 12 - . 14 . This would include issues such as difficulties encountered during the audit , significant or unusual transactions , uncorrected misstatements , matters that are difficult or contentious reviewed with those charged with governance , and other significant matters . If matters identified during the audit were required to be reported as described in AU -C §260 . 12 - . 14 and were communicated in a method other than an AU -C § 260 letter, the written documentation must be submitted .