AG 1992 03 09 - Laserfiche WebLink

Home Browse Search

Honorable Carolyn Carpenter, Chairperson and Members of the Board of Commissioners Page 2 February 26, 1992 errors, irregularities, or illegal acts, including fraud or defalcations, may exist and not be detected by us. We will advise you, however, of any matters of that nature that come to our attention. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any losses that might be incurred during any later periods for which we are not engaged as auditors. We understand that you will draft the comprehensive annual financial report and pay for all report reproduction costs. We understand that you will provide us with the basic information required for our audit and that you are responsible for the accuracy and completeness of that information. We will advise you about appropriate accounting principles and their application, but the responsibility for the financial statements remains with you. This responsibility includes the maintenance of adequate records and related internal control policies and procedures, the selection and application of accounting principles, and the safeguarding of assets. We understand that your employees will type all cash, accounts receivable, accounts payable, and other confirmations we request and will locate any invoices selected by us for testing. Our audit is not specifically designed and cannot be relied on to disclose reportable conditions, that is, significant deficiencies in the design or operation of the internal control structure. However, during the audit, if we become aware of such reportable conditions or ways that we believe management practices can be improved, we will communicate them to you in a separate letter. Our fees for these services will be based on the enclosed contract to audit accounts. Our invoices for these fees will be rendered as work progresses and are payable on presentation after receiving approval from the Local Government Commission. Based on our preliminary estimates, the fee will not exceed $26,650 plus reproduction costs. Occasionally, third parties (Federal and/or~ate agencies) request to review the audit workpapers as required under the Federal and State Audit Acts. Due to the unpredictable nature of these requests, the fee for assisting the third parties is billed at the actual hours incurred at a standard hourly rate and is not included in the base audit fee of $26,650. The hourly rates, as outlined in our proposal, are used based on the level of personnel required. This quote is based on the expectations that all schedules we request during our planning stages in a separate letter, will be correctly and completely prepared prior to our arrival. Also, if additional time is required because of unforseen conditions and circumstances or upon your request, we reserve the right to negotiate with commissioners the appropriate actions to be taken and the related additional billings if we are required to perform duties outside the scope of the audit. We will inform the County Manager weekly of any deviations encountered.