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B- Audit Preparation and COllllllunication The services that MMKR provides 10 help entities with GASH Statement No. 34 vary greatly . according to their needs. Howcver, the following are some of the areas where we have typically provided assistance. We believe that thc most important element or an audit is planning. We have provided assistance in this area in a number of ways. including: taking part in planning meetings, helping to develop audit plans, and providing an l\'IMKR-developed planning checklist and othcr tools. We help our clients set timclincs and assign tasks, identify areas wherc MMKR or internal city stalf will be used, idcntify and resolve the numerous report presentation issues inherent in this statement, and identify steps that arc best completed prior to the year-end. Another critical and otten overlooked t~lclor is conllllunication. 1\s previously mentioned, MMKR has been very proactive in helping to prepare our clients' governing bodies and citizens f()r the change. We also use opportunities such as prcsentations and workshops to help the linancial statement users understand the new statements. In addition. MMKR has been involved in helping finance departnlents to communicate with councils and boards, ontside consultants, and other departments wilhin the governmcnt to understand the new 1inancial stall:mcnls. MMKR also works closdy with all of our clients in preparing I()r the audit, helping them identity the areas where additional schedules or audit proccdures will be required due to GASH Statcnll:nt No. 14. We oller our clients internally developed checklists and electronic \Vorkpapcr templates to make their audit preparations as erticient as possible, although we are always willing lu work with client prepared schedules in whatever f()fInats they prefer. Of course, we help our clients interpret the technical aspects of GASH Statement No. 34 and the related pronOlHlcements. 1\11 through the audit process. from planning through report production, we \vork closely with our clients to assure these new standards are properly applied. . Finally. the area where we typically provide the most assistance is financial statement preparation. MMKR takes great pride in the quality of our clients' financial statements, whether we arc reviewing a client-prepared report, or drafiing the statements for them. We offer our clienis the use of1vi!vlKR-dcvclopcd financial statC111cnt tcnlplatcs and cxarnple not.e disclosures. We have also incorporated int() our audit tools new tJial balance sothvare capable of being used to extract inll.)rmat ion from our clients' financial records to assist in the preparation of the financial statements required by GASH Statement No. 14. Also. every report that bears our opinion goes through an extensive review process to help assure accuracy and compliance with governmental report ing standards, VII. SPECIFIC AUDIT APPH.OACH MMKR uses a two-step approach to auditing cities. First, we review. document, and test the City's intcmal control to meet audit requirements relating to both the basic financial statements and ICderal linancial assistance programs. Second, we perll.mn substantive tests of account balances which include analytical review procedures and tests of compliance \vith laws and regulations. Our audit approach satisfies the requirements of auditing standards, the standards generally accepted in the United States of Amcrica fl.)r financial compliance audits contained in GOVcrlllllClI1 .-Iuditing Slandards, issued by the Comptroller General of the United States. A. I)roposed SeglUl'ntation of the EngagelU{'nt (Sel' schedule on following pagl') B. I.evel of Staff and Number of Hours to be Assigned to Eal'h Proposed Segment of the Engagl'lIIent (See schedule on following page) . -10-