Alberni Caballero & Fierman, LLP

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I I City of Sunny Isles Beach It- I _ I Ir IMI I I I = I 1 I1111111111111111i11111111I111111 111111i1111111111III li 111111111iIII111111iIIIIIIIIIII11111111111111111 11111111 Iinternal control structure. This understanding includes areporting. This will include final testing in the areas of compli- nce, balance sheet accounts, revenue and expenditures, among others. All draft reports will be reviewed with knowledge about the design of relevant policies, procedures,and records,and whether they have been management before issuance, and the partners will be I placed in operation by the City. available to meet with the commission to discuss our report and address any questions they may have. • Develop audit programs to incorporate the consideration of financial statement assertions, Audit Management Plan Ispecific audit objectives, and appropriate audit Our audit approach is to develop a specific audit action plan procedures to achieve the specified objectives. tailored to the individual needs of our client. For each audit we • Identify and resolve accounting, auditing, and reporting develop the most efficient combination of audit techniques se- 1 matters. lected from the following methodologies. Phase II - Execution of Audit Plan Auditing Standards promulgated by the American Institute of The audit team will complete a major portion of Certified Public Accountants provide guidance for I transaction testing and audit requirements during this phase. auditors in assessing the internal control structure for The procedures performed during this period will enable the purpose of the audit. As auditors, we consider the us to identify any matter that may impact the completion internal control structure which consists of the following I of our work or require the attention of management. five elements. Tasks to be performed in Phase II include, but are not limited to the following: The Control Environment I The control environment includes the management • Analytical procedures are applied in this stage of the philosophy, operating style, organizational structure, audit to assist in planning the nature,timing,and extent functions of various boards and committees, methods of of auditing procedures used to obtain evidential matter assigning responsibility,personnel policies and procedures,and Ifor specific account balances or classes of transactions. various other factors that reflect the City's concern • Perform substantive tests of account balances and with control in the area of finances. We will read the various transactions.Samples will be drawn of major transaction documents that impact this environment, and talk to systems, including cash disbursements.cash receipts, employees to see how these ideologies are portrayed at Ipurchases,and payroll. various levels. • Perform tests of compliance with laws, regulations, Risk Assessment contracts,and grants. After understanding the control environment,we will identify 1 • Review test results and preliminary conclusions and assess the relevant risks to achieving the objectives of the financial system. Phase III—Evaluation of Audit Results IThis phase includes a review of all audit documentation Control Activities by the partners to ensure that testing and documentation sup- The control procedures are integrated in the components of port the conclusions reached. This phase also includes prelim- the control environment and accounting system. While gaining inary discussions with management of the audit an understanding of those areas,we will assess the control pro- findings. cedures that the City has in place. Consideration will also be given to potential improvements to the efficiency Phase IV—Completion and Delivery and effectiveness of the procedures in place. Any I In this phase of the audit. we will complete the tasks suggestions for improvement will be communicated to related to the closing of year-end balances and financial the appropriate person(s). I1111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111111 Proposal for Professional Auditing Services Alberni Caballero&Fierman, LLP page 19 I I