evidence that support the transactions recorded in the accounts. As part of our audit process, we
will request written representations from your attorneys, and they may bill you for responding.
At the conclusion of our audit, we will also request certain written representations from you
about the basic financial statements and related matters.
Internal Control Audit Procedures
Because of the inherent limitations of an audit, together with the inherent limitations of internal
control, an unavoidable risk that some material misstatements or noncompliance (whether caused
by errors, fraudulent financial reporting, misappropriation of assets, detected abuse, or violations
of laws or governmental regulations) may not be detected exists, even though the audit is properly
planned and performed in accordance with U.S. GAAS and Government Auditing Standards of the
Comptroller General of the United States of America. Please note that the determination of abuse
is subjective and Government Auditing Standards does not require auditors to detect abuse.
In making our risk assessments, we consider internal control relevant to the City’s preparation
and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances but not for the purpose of expressing an opinion on the
effectiveness of the City’s internal control. However, we will communicate to you in writing
concerning any significant deficiencies or material weaknesses in internal control relevant to the
audit of the financial statements that we have identified during the audit.
Compliance with Laws and Regulations
As part of obtaining reasonable assurance about whether the financial statements are free of material
misstatement, we will perform tests of the City’s compliance with the provisions of applicable
laws, regulations, contracts, and agreements. However, the objective of our audit will not be to
provide an opinion on overall compliance and we will not express such an opinion.
Audit of Major Program Compliance
Our audit of the City’s major federal award programs compliance will be conducted in accordance
with the requirements of the Single Audit Act, as amended; and the Uniform Guidance, and will
include tests of accounting records, a determination of major programs in accordance with the
Uniform Guidance and other procedures we consider necessary to enable us to express such an
opinion on major federal award program compliance and to render the required reports. We
cannot provide assurance that an unmodified opinion on compliance will be expressed.
Circumstances may arise in which it is necessary for us to modify our opinion or withdraw from
the engagement.
The Uniform Guidance requires that we also plan and perform the audit to obtain reasonable
assurance about whether the City has complied with applicable laws and regulations and the
provisions of contracts and grant agreements applicable to major federal award programs. Our
procedures will consist of determining major federal programs and performing the applicable
procedures described inthe U.S. Office of Management and Budget OMB Compliance Supplement
