Laserfiche WebLink
Ms. Pamela Arends -King <br />Assistant Director of Finance and Management Services <br />City of Santa Ana <br />April 21, 2008 <br />Page 5 <br />Our procedures will include tests of the following, as we consider necessary: 1) documentary <br />evidence supporting the transactions recorded in the accounts, 2) the physical existence of <br />inventories and 3) direct confirmation of receivables and certain other assets and liabilities <br />by correspondence with selected individuals, creditors, and financial institutions. We will <br />request written representations from your attorneys as part of the engagement. At the <br />conclusion of our audit, we will also require certain written representations from you about <br />the financial statements and related matters. <br />Audit Procedures — Internal Controls <br />Our audit will include obtaining and understanding of the entity and its environment, <br />including internal control, sufficient to assess the risks of material misstatement of the <br />financial statements and to design the nature, timing, and extent of further audit procedures. <br />Tests of controls may be performed to test the effectiveness of certain controls that we <br />consider relevant to preventing and detecting errors and fraud that are material to the <br />financial statements and to preventing and detecting misstatements resulting from illegal acts <br />and other noncompliance matters that have a direct and material effect on the financial <br />statements. Our tests, if performed, will be less in scope than would be necessary to render <br />an opinion on internal control and, accordingly, no opinion will be expressed in our report on <br />internal control issued pursuant to Government Auditing Standards. <br />As required by OMB Circular A -133, we will perform tests of controls over compliance to <br />evaluate the effectiveness of the design and operation of controls that we consider relevant to <br />preventing or detecting material noncompliance with compliance requirements applicable to <br />each major federal award program. However, our tests will be less in scope than would be <br />necessary to render an opinion on those controls and, accordingly, no opinion will be <br />expressed in our report on internal control issued pursuant to OMB Circular A -133. <br />An audit is not designed to provide assurance on internal control or to identify significant <br />deficiencies. However, during the audit, we will under professional standards established by <br />the American Institute of Certified Public Accountants communicate to management and <br />those charged with governance internal control related matters that are required to be <br />communicated by Government Auditing Standards and OMB Circular A -133. <br />Audit Procedures— Compliance <br />As part of obtaining reasonable assurance about whether the financial statements are free of <br />material misstatement, we will perform tests of compliance with applicable laws and <br />regulations and the provisions of contracts and agreements, including grant agreements. <br />However, the objective of those procedures will not be to provide an opinion on overall <br />