Laserfiche WebLink
Procedures used to understand internal processes and controls <br />We understand changing audit firms would require a new set of <br />auditors to develop an understanding of the City and its internal <br />control and operating structure. We also strive to develop our <br />understanding in the least intrusive manner possible, while still <br />maintaining our professional responsibilities. We would utilize a <br />combination of internal control forms and interviews with key <br />accounting personnel to gain and document our understanding of <br />the City. We will also use as a baseline any existing internal control <br />processes, policies, organizational charts, etc. the City may have <br />already documented. A walk through of design and operating <br />effectiveness would then be performed to confirm our <br />understanding. <br />�s <br />,`moo <br />�a <br />C°ntratenylronme c <br />Risk ht <br />assessment <br />Inform Control activities <br />atlon and commUnic . <br />The Committee of Sponsoring Organizations of the Treadway <br />at'rjn <br />Commission (COSO) has established a framework for internal <br />control systems. Under the COSO framework, internal control is a process to provide reasonable assurance that <br />those internal objectives, including effectiveness and efficiency of business operations, reliability of financial <br />reporting, and compliance with applicable laws and regulations, will be met, if applicable. <br />Our audit approach is designed to evaluate and walk through the departmental internal controls in accordance <br />with COSO concepts. Our procedures include a review of the overall control environment, determination of the <br />adequacy of those procedures, and a walk through of the procedures to determine if they are functioning as <br />designed. <br />During the planning and internal control phases of our audit, we will develop our understanding of the City <br />business operations and internal control structure for financial accounting and relevant operations through <br />observation, discussion, and inquiries with management and appropriate personnel. During this phase of the <br />audit, we will review budgets and related materials, organization charts, accounting and purchase manuals, and <br />other systems of documentation that may be available. <br />Once we understand your operations, we will then identify control objectives for each type of control that is <br />material to the financial statements. The next step will be to identify and gain an understanding of the relevant <br />City of Santa Ana RFP No. 24-009 Page 40 of 63 <br />