CCP 08-28-1995 - Laserfiche WebLink

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. . AIDJ , City of Arden Hills %~ .. August 14, 1995 Page Two l>:mHU' PI "Li,. .-\"",,>.-\,;':< ~"[) C."~lIT\' TO; . . An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the .. number of transactions to be examined and the areas to be tested. Also, we will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. However, because of the concept of reasonable assurance and . because we will not perform a detailed examination of all transactions, there is a risk that material errors, irregularities, or illegal acts, including fraud or defalcations, may exist and not be detected by us. We will advise you, however, of any matters of that nature that come . to our attention. Our responsibility as auditors is limited to the period covered by our audit and does not extend to matters that might arise during any later periods for which we are not engaged an auditors. . We understand that you will provide us with the basic information required for our audit and that you are responsible for the accuracy and completeness of that information. We will . advise you about appropriate accounting principles and their application and will assist in the preparation of your fmancial statements, but the responsibility for the financial statements tt remains with you. This responsibility includes the maintenance of adequate records and related internal control structure policies and procedures, the selection and application of accounting principles and the safeguarding of assets. . Our audit is not specifically designed and cannot be relied on to disclose reportable conditions, that is, significant deficiencies in the design or operation of the internal control structure. However, during the audit, if we become aware of such reportable conditions or . ways that we believe management practices can be improved, we will communicate them to you in a separate letter. . Our fees for these services will be based on the actual time spent at our standard hourly rates, including travel and other out-of-pocket costs such as report production, typing, . postage, etc. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. Based on our preliminary estimates, the fee will approximate $7,995 for the City. This . estimate is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional . time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional cost. . .e .