Agenda - 05-04-2004-5d - Laserfiche WebLink

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5 This fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit.. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs, Any modification to the fee shall be in writing and signed by both parties., You agree to pay all costs of collection (including reasonable attorneys' fees) that we may incur in connection with the collection of unpaid invoices. The nature and scope of our audit procedures have changed from the prior year engagement as a result of an auditing standard that has been re Snelcifcall d hetAICPAfhas ssuedaStatement on Aud ting Standards (' SAS') No Public Accountants (the "AIGPA") p Y. 99, Consideration of Fraud in a Financial Statement Audit, which is effective for this fiscal year We have assesse included ou~est ~mates'tof tghe add t odnal time and expe'ns'e9or us to complete thelnew equ~dredpprocedueesain our fee estimate. LIMITATIONS OF THE AUDITING PROCESS Our audit will include procedures designed to obtain reasonable, rather than absolute, assurance of detecting misstatements due to errors or fraud that are material to the basic financial statements. As you are aware, however, there are inherent limitations in the auditing process. For example, audits are based on the concept of selective testing of the data being examined and are, therefore, subject to the limitation that material misstatements due to errors or fraud, if they exist, may not be detected. Also, an audit is not designed to detect error or fraud that is immaterial to the basic financial statements. As required by the Single Audit Act Amendments of 1996 and OMB Circular A-133 and the State Single Audit Implementation Act, our auditwill include tests of transactions related to major federal and State award programs for compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Because an audit is designed to provide reasonable, but not absolute assurance and because we will not perform a detailed examination of all transactions, there is a risk that material errors, fraud, other illegal acts, or noncompliance may exist and not be detected by us. In addition, an audit is not designed to detect immaterial errors, fraud, orother illegal acts or illegal acts that do not have a direct effect on the basic financial statements or to major programs. It should be recognized that our audit generally provides no assurance that illegal acts will be detected, and only reasonable assurance that illegal acts having a direct and material effect on the determination of financial statement come tosou'rl attentiontdduring the corurse of lour audft~ Wetw II nelude suchematters in the reports asll egqui edsfoh a Single Audit. If, for any reason, we are unable to complete the audit, or are unable to form or have not formed an opinion on the basic financial statements, we may decline to express an opinion or decline to issue a report as a result of the engagement RESPONSIBILITIES AS TO INTERNAL CONTROLS As a part of our audit, we will consider the entity's intemal control structure, as required by auditing standards generally accepted in the United States of America and 6overnmentAuditing Standards, sufficient to plan the audit and to determine the nature, timing, and extent of auditing procedures necessary for expressing our opinion concerning the basic financial statements.. You recognize that the basic financial statements and the establishment and maintenance of an effective internal control over financial reporting are the responsibility of management.. You also recognize that management is responsible for identifying and ensuring that the entity complieswith the laws and regulations applicable to its activities. Appropriate supervisory review procedures are necessary to provide reasonable assurance that adopted policies and prescribed procedures are adhered to and to identify errors, fraud, or illegal acts, An audit is not designed to provide assurance on internal control, As part of our consideration of the entity's internal control structure, however, we will inform you of reportable conditions and other matters that come to our attention that represent significant deficiencies in the design or operation of the internal control structure, if any, as required by OMB Circular A-133 and the State Single Audit Implementation Act, As required by OMB Circular A-133 and the State Single Audit Implementation Act, we will perform tests of controls to evaluate the effectiveness of the design and operation of controls thatwe consider relevantto preventing or detecting material noncompliance with compliance requirements, applicable to each major federal and State award program..