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Item 21 - Award a Contract to CliftonLarsonAllen LLP for Professional Auditing Services
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Item 21 - Award a Contract to CliftonLarsonAllen LLP for Professional Auditing Services
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5/13/2024 12:40:40 PM
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City Clerk
Doc Type
Agenda Packet
Agency
Finance & Management Services
Item #
21
Date
5/7/2024
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To illustrate, if no internal control deviations are anticipated and the frequency of the population (i.e., the <br />number of times the control is performed in a given year) is less than 100, then we will test 20 transactions in <br />order to obtain moderate control assurance. If two internal control deviations are anticipated, and the <br />frequency of the population is greater than 200, then we will test 90 transactions in order to obtain low control <br />assurance. We are usually able to cover a substantial portion of the compliance and controls testing with one <br />sample, resulting in a very efficient approach. <br />Type and extent of analytical procedures <br />Preliminary analytical procedures will assist in planning the nature, timing, and extent of auditing procedures <br />that will be used to obtain evidential matter. These procedures will focus on enhancing our understanding of the <br />financial results. These procedures are also used to identify any significant transactions and events that have <br />occurred since the last audit date, as well as to identify any areas that may represent specific risks relevant to <br />the audit. <br />In performing our substantive testing, our audit efficiency initiative provides that we first think analytically. By <br />doing this, we can better understand the specific account balance being tested and determine if the current <br />balance or relationship with other account balances appears reasonable. We will also employ analytical testing <br />on smaller and/or lower risk accounts and cycles to maintain efficiency and to meet milestones. <br />Data analytics <br />In addition to standard auditing methodology, a distinguishing aspect of CLA's audit services incorporates the <br />power of data analytics to multiply the value of the analyses and the results we produce for clients. CLA's data <br />methodology is a six -phase, systematic approach to examining an organization's known risks and identifying <br />unknown risks. Successful data analysis is a dynamic process that continuously evolves throughout the duration <br />of an engagement and requires collaboration of the engagement team. <br />Data analytics are utilized throughout our audit process, our <br />Risk Assessment, Data Analytics and Review ("RADAR") is a <br />specific application of general ledger data analytics that has <br />been implemented on all audit engagements. RADAR is an <br />innovative approach created and used only by CLA that aims <br />to improve and replace traditional preliminary analytics that Response and <br />were being performed. document <br />The phases in our data analytics process are as follows: <br />1. Planning <br />Interpret result <br />and risk <br />In the planning stage of the engagement, the use of data assessment <br />analysis is considered and discussed to determine that <br />analytics are directed and focused on accomplishing <br />objectives within the risk assessment. Areas of focus, such <br />as journal entries, cash disbursements, inventory, and <br />accounts receivable are common. <br />2. Expectations <br />01 <br />Planning <br />We consider the risks facing our client and design analytics to address these risks. Through preliminary <br />discussions with management and governance, we develop and document expectations of financial transactions <br />City of Santa Ana RFP No. 24-009 Page 38 of 63 <br />
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