1997 AGN APR 01 I08 - Laserfiche WebLink

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, . . .. , ._ .. . .., .. . � . ..... , . . ... ._..__ ._:.._ ._.... .... .I I.. _I..1 . .... .. :..�-1 ��.: , . _. �, � . . . . . . . ' . ' � . . . . . . � . � . . . L. ., ; . _. anCe e�n�� .. � � .SOi� �e� . � ac�acic �� . . , Lvnghard .,cc��xn,NTs _ gover�iment. However, if the c�ients system warrants a�pecialized in depth review of various con#rols, etc. then: such a speciaiist would be engaged; however, you wQ�ld be consulted prior to :incurring any additional costs. 4. , Analytical P'roce�iures = We use analytical �rocedures as an overall review of the financial informataon in the final stage of the audit. These prQcedures are desi�n�;d to . assist us in assessing the propriety of the cc�nclusions reached and in the eva�uation of ti�e overall financial statement presentation. 3'he proced�es utilized consist of determining percentage 'increas�s and d�creases betwe�n significant revenue; expenditur�s and balance sheet accounts, reading the financial statements and relatecl notes, and focu�ing on overail r�lationship witi�in the. financial statements. t)nce det�rmined, these_ are reviewed ta determine if the changes appear reasonable or are out of line_ Far all '' significant differ�nces, e�lanations are obtained a� to why the situatiari occurred and ; additional substantive pr�cedures may be _applied and related evidence gati�ered to resolve concerns and questions. `� i '�. Internal Control - To gain an understanding of the City's infernai control siructu�e, we complete forms taken from the Local Government Publication of Pra�titioners I'ub�ishirig �mpany. These forms meet the technical standards of the �ICPA and allflw us to docu�ne�t the purpase of funds; the structure of the City and to quantify materiality. The forms thernselves are over 30 pages in length. Also w�th regard to the docurs�entation and verification of iniernal contrt�ls, we utilized an internal control questionnaire in which we st�Iicit respor�s�s from elient staff as to duties performed. This is dt�ne sa as to deterinine if pr�per s�gregatifln of duties are pr�sent. �Vhile most firms perf�rm this step by � ving #he questionnaire ta the �ity staff to b� cc�mplet�d, we arrange persflnal interviews �vith City staff and from those we will comple#e the questionnaire: Also, our sample tests are desig�ed to integrate this questionnair� into the co�n�ilian�e tests, so that r�spflnses tt� the quesiions can i�e verified. `�. Laws ar�d regulatic�ns that �rill be subject tc� audit t�st work are determined frc�m the mu�icipal cod� o��he City {�re would ask for acc�ss to a vol�zme of th� Code during our �eldwork), aPPlicable ��ctions of Government Code far the State of �alifornia (we hav� a camplete library �f Califc�rnia C�des) and our eart�nsive ��riene� �vith gavernmental entities. The purpose of tests c�f camplia��e with laws and regulant�ns is to de��;rmine whether th�;re have i�een instances af nonc�mpliance that may have a mate�al eff�ct on the finaricial statements and to provide a basis of repc�rting on the City's com�lianc� with such laws and regulatic�ns: In a single ai��iit, we aPP�Y �� sampling to determine cflmpliance with laws and re�ulations. �e select a sample of revenue and e��penditure � 22 � , ,, _ , � - _ I