CCP 11-27-2006 - Laserfiche WebLink

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City of Arden Ilills Page 2 ()ctpber 2.1. 2006 . Audit Objcdives . The objective of our audit is the expn.:ssion of opinions as to whether your basic linancial statements arc fairly presenlt:d. in all material respects, in eonfi.lDnity with accounting principles generally accepted in the I 'nited States pf America and to report on the faimess of the additional inJ(lDllation referred to in the (irst paragraph when considered in rdation to the basic financial statements taken as a whole. Our audit will be conducted in accordance with auditing standards generally nccepted in the United States of America and the standards for financial audits cpntained in GOl'crnment Auditing Stolldards, issued by the Cllmp1roJ!cr (ieneral of the United States. and will include tests of the aecl1unting records of the City and other procedures we Clmsider necessary to enable us to express such opinions. If our opinions on the Jinancial statements arc other than uJlqualified, we will tillly discuss the reasons with you in advance. If, for any reason, we arc unable to complete the audit or arc unable to f(lrm or have not fi.!fmed opinions, \ve Illay decline 10 express ppinions or tn issue a report ns a n:sult pfthis engagement. \Ve will also prm.ide a repnrt (that docs not include an opinion) on internal control related to the financial statements and compliancc with the provisions of applicable Jaws, regulations, contracts, agreements, and ,!!Jants, noncompliance with which could have a material dfcet on the Jinancial statcments as required by (;0)'('1'1/11/( 'II! ,/IIl!iting Stalldards. The rep()rts on intemal control and compliance will each include a s!;ikment that the report is intended solely !()r the information and use of the audit committee, 11l~lIlagnllt~nt. and speei lie legislative or regulatory hudies. and is not inknded to be. nnd should not be, lIsed hv anYl1ne ot her than these speci lied parties. I\lalla~l'ml'llt Ih'spnllsihilifi('s l'vlanagelncnt is responsihle f(lr estahlishing. and maintaining effective internal control and for compliance with the provisions of applicable laws, regulations, contracts. agrcements. and grants, In fulfilling this responsihility. estimates and judgments hy management are required to nssess the expected benefits and . rdated costs or the controls. The objectives of intemal control are to provide management with reasonable, but not absolute. assurance that asscts arc salcguanled against loss from unauthorized use or dispositinn. that transactions arc exccuted in accordance \vith management's authorizations and recorded propcrly to permit the preparation of financial statements in accordance with accounting principles generally acceptt;d in the Unikd States of America, 1\'lan;ll!elllent is responsible fnr making all tinancial records and related inlllrmation available to us. We understand that you will provide us with such inl'i.mnation required 1l)J' our audit and that you arc responsible for thc accuracy and complcll:ncss of that inl'i.mnntion. Management's responsibilities lIIc1udc adjus1ing the linaneial stntcments to correct material misstatements and f'i.lr eonfimling to us in the representation Iettl~r that the efll:cts of any uncorrected misstatements aggregated by us during the current engagcment and pertaining to the latest period presented are immaterial, both individually and in the aggregate. to the linancial statements taken as a whole. )' ou arc responsible 1(.Ir estahlishing and maintaining internal cOlltrols, including monitoring ongoing activities: f(lr the selectioll and application of accounting plinciplcs and I'i.)f the hlir presentation in the linancial statements or the respective financial position of the governmental activities, the business-type m:tivities. cach major rund, and the aggregate remaining hllld inlimnatillll of the City and the respective chanv.l~s in Jinaneial position and cash flows. where applicable. in conf'i.'lIlnity with accounting principles gellLTally accepted in the United States of America. You arc n::sponsibk f(l!' the design and implementation of progrnms and controls to prevent and detect haw!. ami fill' inl(lrIning us ahoul all known or suspected haUlL or illegal acts afkctinv. the City involving (a) management. (h) cmpklyees who have significant roles in internal control. nnd (c) others where the hallllm illegal acts could have a materinl effect on the finnneiaJ statements. Your responsibilities include infi)rming liS orYOl!r knowledge or any allegations or frnud or suspected fraud. or illegal acts affecting the City received in eOIlHllllllieations rrom employees, I(mner employees, grantms. regulators, or others. In addit ion. )iOU arc responsihle ((lr identifying and ensuring that tht: City complies with applicable laws and . regulations and f'i.lr taking timely and appropriate steps to remedy any rraud, illegal acts. violations of contracts or grant agreements, or abuse that we may report.