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obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
e Obtain an understanding of internal control relevant to the audit 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 entity’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.
e Evaluate the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluate the overall
presentation of the financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
e Conclude, based on the audit evidence obtained, whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City’s ability to
continue as a going concern for a reasonable period of time.
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 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.
Our responsibility as auditors is limited to the period covered by our audit and does not extend
to any other periods.
Compliance with Laws and Regulations
As previously discussed, part of obtaining reasonable assurance about whether the basic 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.
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