AUDITOR SELECTION - Laserfiche WebLink

Browse Search

CONEJO RECREATION AND PARK DISTRICT AND THE MOUNTAINS RECREATION AND CONSERVATION AUTHORITY PROPOSAL FOR PROFESSIONAL AUDITING SERVICES Specific audit approach (continued) As indicated in the next section of the proposal, the overall objective of the engagement with the District is to conduct an audit of the financial statements in accordance with required auditing standards and the expression of an opinion on those financial statements. Beyond that initial objective, we believe that our engagement approach provides certain other value added characteristics, at no additional cost, that will benefit the District over the long- term: • All of our audits are designed to be performed in an efficient and effective way to minimize disruption to the office operations. • We offer practical observations and recommendations relating to internal control issues, implementation of accounting standards and the policies and procedures regarding both. • We identify opportunities for operating efficiencies which can be used to decrease operating costs of the District. Audit approach and audit segmentation The following is a summary of the audit team's audit approach for the District's engagement. The audit will be divided into the following segments: Segment 1 - Interim testing - planning, pre -audit administration and internal control testing During this phase of the audit, our principal objectives will be to gather information about the District and its environment, including internal control over financial reporting. In order to achieve the desired objectives of this phase of the audit, we will: • Meet with the District's staff in order to determine convenient dates in which we can begin our audit, and to discuss the assistance to be provided by the District's staff. • Hold brainstorming sessions with engagement team members to discuss the susceptibility of the District's financial statements to material misstatement and fraud. • Review and evaluate the District's accounting and reporting processes by reviewing the prior year's audit workpapers, any District -prepared documents such as budgets, in-house financial reports, policies and procedures manuals, minutes of board meetings, etc., and by using various analytical procedures. Analytical procedures will enhance our understanding of the District and will help us identify areas that may need further assessment and additional testing. • Review and retain copies of any pertinent local, state and federal statutes, regulations, or charters that apply to the District. • Evaluate the design of controls that are relevant to the audit by obtaining a thorough understanding of the District's internal controls over financial reporting and compliance by documenting key internal control components, utilizing questionnaires, walkthroughs, inquiring of the District's personnel, and observing and reviewing key supporting documentation (a more thorough explanation of this process is discussed later in the technical proposal). • Test controls, if control risk is assessed below the maximum, by selecting a sample of transactions within the audit area being tested and reviewing supporting documentation, and evaluating the completeness of the documentation tested, as well as the adequacy of support and approvals as they appear on the support. AICPA GAQC Member -17-