AC&C - Laserfiche WebLink

Home Browse Search

SECTION II - SPECIFIC AUDIT APPROACH .:. Documented controls - Tested by reviewing a sample of transactions for evidence that the control was being performed. .:. Undocumented controls - Tested through inquiry and observation procedures with appropriate department personnel. Laws and Regulations Statement on Auditing Standards from the American Institute of Certified Public Accountants, establishes standards for testing and reporting on compliance with laws and regulations. In all financial statement audits, the auditor must consider laws and regulations that have a direct and material effect on the financial statements. Further, the auditor designs audit procedures to provide reasonable assurance that the financial statements are free of material misstatements resulting from violations of these laws and regulations that have a direct and material impact on the financial statements. For governmental entities, this requirement is even more important given the variety of legal and contractual considerations typical of the government environment. Identifying applicable laws and regulations is fundamental to fulfilling the responsibility of understanding their effects. We will obtain this knowledge through the following sources: .:. Discussion of compliance requirements with the City's officials, including legal counsel. .:. Identification of compliance matters in statutes, financial ordinances, City's policies, contracts, grants and debt agreements. .:. Review of City's commission meeting minutes. .:. Inquiries of the program administrator of the governmental entities that provided grants about restrictions, limitations, terms and conditions under which such grants were provided including review of the OMB Circular A-133 Compliance Supplement and the Florida Single Audit Act. .:. Our existing knowledge of federal and state laws. Statistical Samples Offered To Be Performed In The Audit Based On Federal Grant Funds Awarded To The City During the planning of the Single Audit engagement, we will identify the major programs to be audited pursuant to Circular OMB A-133. As required, the determination will be based on the dollar amount of federal expenditures and the associated program risk. Further, as appropriate, our audit will be planned to provide for a low level of assessed control risk. . After we have identified the major programs, we will perform appropriate auditing procedures, including tests of controls, tests of compliance with laws and regulations, and substantive testwork. Sampling methodology determination, i.e., statistical, or non-statistical, random, systematic or judgmental selection method, etc., will be based on the auditor experience and judgment. Description Of Procedures To Be Used To Ensure The Accuracy Of The Statistical And/Or Nonstatistical Samples To ensure that samples selected for attribute testing (tests of controls and compliance) and variable testing (tests of details/substantive testwork) are "accurate", or valid, all samples will be reviewed and evaluated to ensure that items selected are, . representative of the population so that characteristics of the sample can be reasonably projected to the entire population . of adequate size based on internal controls, tolerable error, expected deviations, acceptable confidence levels, etc. . from a complete population CITY OF SUNNY ISLES BEACH RFP # 10-06-01 Page 12