25F - FINANCIAL AUDIT SERVICES - Laserfiche WebLink

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Ms. Pamela Arends-King Assistant Director of Finance and Management Services City of Santa Ana Apri121, 2008 Page 5 Our procedures will include tests of the following, as we consider necessary: 1) documentary evidence supporting the transactions recorded in the accounts, 2) the physical existence of inventories and 3) direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement. At the conclusion of our audit, we will also require certain written representations from you about the fmancial statements and related matters. Audit Procedures-Internal Controls Our audit will include obtaining and understanding of the entity and its environment, including internal .control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards. As required by OMB Circular A-133, we will perform tests of controls over compliance to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each major federal award program. However, our tests will be less in scope than would be necessary to render an opinion on those controls and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to OMB Circular A-133. An audit is not designed to provide assurance on internal control or to identify significant deficiencies. However, during the audit, we will under professional standards established by the American Institute of Certified Public Accountants communicate to management and those charged with governance internal control related matters that are required to be communicated by GovernmentAuditing Standards and OMB Circular A-133. Audit Procedures-Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of compliance with applicable laws and regulations and the provisions of contracts and agreements, including grant agreements. However, the objective of those procedures will not be to provide an opinion on overall 25F-11