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City of Gem Lake Page 2 <br />May 20, 2022 <br /> <br /> <br />If we conclude that a material misstatement exists in other information obtained after the date of the <br />auditor’s report, we will be required to perform procedures to determine that the misstatement has been <br />corrected, and reviewing the steps taken by management to communicate with those in receipt of the other <br />information, if previously issued, to inform them of the revision. If the City’s management and those <br />charged with governance do not agree to revise the other information, we may take action to have the <br />uncorrected misstatement appropriately brought to the attention of anyone in receipt of the financial <br />statements and auditor’s report, if considered appropriate based on our professional judgement and relevant <br />law or regulations. In addition, we may provide a new or amended auditor’s report to management, and <br />request that management provide this new or amended auditor’s report to anyone in receipt of the financial <br />statements and auditor’s report. <br /> <br />We will also assist in preparing the financial statements and related notes of the City in conformity with <br />accounting principles generally accepted in the United States of America based on information provided <br />by you. These nonaudit services do not constitute an audit under Government Auditing Standards and such <br />services will not be conducted in accordance with Government Auditing Standards. We gave significant <br />consideration to these nonaudit services we expect to provide, which may reasonably be thought to bear on <br />independence, in reaching the conclusion that independence has not been impaired. <br /> <br />As part of our audit, we will consider the internal control of the City. Such considerations are solely for the <br />purpose of determining our audit procedures and not to provide any assurance concerning such internal <br />control. <br /> <br />As part of obtaining reasonable assurance about whether the financial statements are free of material <br />misstatement, we will also perform tests of the City’s compliance with certain provisions of laws, <br />regulations, contracts, and grants. However, providing an opinion on compliance with those provisions is <br />not an objective of our audit. <br /> <br />PLANNED SCOPE, TIMING OF THE AUDIT, SIGNIFICANT RISKS, AND OTHER <br /> <br />An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the <br />financial statements; therefore, our audit will involve judgment about the number of transactions to be <br />examined and the areas to be tested. <br /> <br />Our audit will include obtaining an understanding of the City and its environment, including internal <br />control, sufficient to assess the risks of material misstatement of the financial statements and to design the <br />nature, timing, and extent of further audit procedures. Material misstatements may result from (1) errors, <br />(2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental <br />regulations that are attributable to the entity or to acts by management or employees acting on behalf of the <br />entity. We will generally communicate our significant findings at the conclusion of the audit. However, <br />some matters could be communicated sooner, particularly if significant difficulties are encountered during <br />the audit where assistance is needed to overcome the difficulties or if the difficulties may lead to a modified <br />opinion. We will also communicate any internal control related matters that are required to be <br />communicated under professional standards.