CCP 05-19-2003 - Laserfiche WebLink

Home Browse Search

. . . City of Arden Hills April 10, 2003 P age Three Audit Adjustments For purposes of this letter, professional standards define an audit adjustment as a proposed correction of the combined financial statements that, in our judgment, may not have been detected except through our auditing procedures. An audit adjustment mayor may not indicate matters that could have a significant effect on the City's financial reporting process (that is, cause future financial statements to be materially misstated). In our jndgment, none of the adjustments we proposed, whether recorded or unrecorded by the City, either individually or in the aggregate, indicate matters that could have a significant effect on the City's fmancial reporting process. We did propose 26 journal entries that are considered year end accounting entries that a City should make in order to have accurate records before an audit begins. We encourage the City to reduce the accounting entries necessary to adjust year end balances. We noted no unconceted misstatements. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting or auditing matter that could be significant to the general purpose financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Consultations with Other Independent Accountauts In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to the City's general purpose [mandaI statements or a detennination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check v:,,rith us to detennine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Issues Discussed Prior to Retention of Indcpendcnt Auditors We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the City's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing our audit.