Marcum - Laserfiche WebLink

Home Browse Search

PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 32 Note: The Uniform Guidance states that the auditor must use a risk-based approach to determine which federal programs are major programs. This determination will affect the scope of the Uniform Guidance compliance audit and the compliance requirements to be tested. The schedule of expenditures of federal awards, prepared by the City, is the basis of the auditor's identification of type A and type B programs and documentation of our risk-based approach. Upon determination, audit hours for testing a major program significantly range due to program size, program compliance requirements, weaknesses in internal control over federal programs , if any, prior audit findings, program longevity, program clusters, program subrecepients, etc. As such, related Singe Audit hours are not included in the above schedule. SAMPLE SIZE AND EXTENT OF STATISTICAL SAMPLING There are three types of tests that involve audit sampling (statistical and non-statistical sampling) which Marcum will use: Account Balance Tests. Substantive tests of account balances are performed on year- end balances. Certain accounts justify a 100 percent examination, such as confirming an investment and bank balance, which does not involve sampling at all. Transaction and Control Tests. Substantive transaction and control tests are often combined to use one sample to achieve more than one audit objective. We often test the controls to verify that the transactions were properly authorized in accordance with the City’s procedures. Compliance Tests. Compliance tests with laws and regulations are included with the tests of transactions and controls. Additional samples are sometimes necessary to test specific laws and regulations. Sample sizes for compliance testing are determined based on the number of transactions and the significance of the requirement. The audit team will report on a weekly basis to management the status of any potential adjustments so that management may have adequate time to investigate, gather information and respond, if necessary. We use a risk-based assessment of the opportunities for a material financial statement error or irregularity to occur and remain undetected. SECURE DATA REQUEST AND COLLECTION PROCEDURE An “Auditor Request List” will be prepared and delivered to you prior to, or shortly after, the close of the Planning meeting. The requested schedules, report, agreements, etc. requested in the “Auditor Request List” are collected by Marcum via a secure workflow tool. Our information technology department has established a secure workflow data management tool (“INFLO”) on our network for each of our clients.