CCP 10-30-2006 (2) - Laserfiche WebLink

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B. Audit Pr('paration and Communication The services that MMKR provides to hclp entities with GASH Statement No. 34 vary greatly . according to their needs_ Ilowcver, the follO\ving are some of the areas wherc we have typically providcd assistancc. Wc believc that thc most important elemcnt of an audit is planning. Wc have provided assistance in this area in a numbcr of \vays, including: taking part in planning meetings, helping to dcvelop audit plans, and providing an MMKR-developed planning checklist and other tools. We help our clients sd timclines and assign tasks, idcntily areas wherc MMKR or intcrnal city stafl will be used, idcnti Iy and rcsolve the numerous report presentation issues inhcrent in this statement, and identily steps that arc best completed prior to thc year-end. Anothcr critical and olten ovcrlooked f;lclor is communication. As prcviously mentioned, MMKR has bcen very proactive in helping to prepare our c1icnts' governing bodies and citizens for the changc. We also use opportunities such as presentations and workshops to help the financial statement uscrs understand the new statements. In addition, MMKR has been involved in helping finance departmcnts to communicatc with councils and boards, outside consultants, and other departments \vithin the government to understand the new financial statements. MMKR also works closely with all of nur clients in preparing for thc audit, hdping them identify the areas where additional schedules or audit procedures will be required due to (jASB Statement No. 34_ Wc otTer our clients internally developed checklists and electronic workpapcr templates to make their audit preparations as efficient as possible, although wc arc always willing to work with c1icnt preparcd schcdules in whatever f(mnats thcy prefer. Of course, we hclp our clients interpret the technical aspccts of GASH Statcmcnt No. 34 and the related pronouncemcnts. All through the audit process, from planning through report production, we work closely with our clients to assure these new standards are properly applied. . Finally, the area whcrc we typically provide the most assistance is linancial statement preparation. MMKR takes great pride in the quality of our clients' financial statcments. whether wc arc reviewing a client-prepared report, or drafting the statements for them. We offer our clients the use of J\.1MKR-dcveloped financial statement templates and exam pic note disclosures. We have also incorporated into our audit tools new tJial balance software eapahle of being uscd to cxtract inti:mnation from our clients' financial records to assist in the preparation of the financial statcments required hy GASH Statement No. 34. Also, every report that hears our opinion goes through an extensive review process to help assure accuracy and compliance with governmcntal reporting standards. VII. SPECIFIC AUlHT APPROACH MMKR uses a two-step approach to auditing cities. First, we review, document, and test thc City's intcrnal control to meet audit requirements relating to both the hasic financial statements and ICdcral linancial assistance programs. Second, we perfonll substantive tests of account halanccs which include analytical review procedures and tests of compliancc with laws and regulations_ Our audit approach satisfies the requirements or auditing standards, the standards generally accepted in the United States of America t()r financial compliance audits contained in Government Auditing Standards, issucd by the Comptroller Cieneral of the United States. A. Propos('d Segm('ntation of the Engagement (S('e schedule on following page) R. Level or Staff and Number of Hours to be Assign('d to Each I.roposed Segment or the Engag(,lllent (Sl'C schcdul(' on following pag(') . - I 0-