Res 2017-087/Audit Services Contract

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e) Determine whether any residual audit risk remains and whether substantive audit tests are required. The Auditor will limit the substantive audit testing to areas where the effectiveness of process controls does not reduce the risk to a relatively low level or where substantive testing is more efficient. 2.0.2 Focus on understanding and evaluating the internal control structure that the City uses to monitor, capture and control risks. The Auditor will perform this evaluation at both the management level as well as the individual process level. 2.0.3 Discuss internal control weaknesses identified by the Auditor with City staff. In addition, the Auditor will discuss major control weaknesses at the City management level. 2.0.4 Establish analytical procedures and utilize these procedures to include comparisons of account balances between accounting periods and ratio and trend analysis to improve the Auditor's understanding of the City and its operations in order to identify critical audit areas. These procedures will include, at a minimum, the comparison of current account balances to similar amounts in the prior annual period's financial statements and the current period's budget. 2.0.5 Assess the audit risk associated with possible violations of laws and regulations related to financial statements. In addition, the Auditor will assess specific information regarding the existence of possible illegal acts and will apply audit procedures specifically directed at ascertaining whether an illegal act has occurred. 2.0.6 Provide technical assistance and advice concerning the City's accounting and auditing issues not only throughout the term of this Agreement and subsequent audit, but also throughout the entire fiscal year. 2.0.7 Conduct audit tests involving random samples as necessary. 2.0.8 Perform all auditing procedures in order to determine that the financial statements are presented in accordance with generally accepted accounting principles applied on a consistent basis and that all material disclosures have been made. 2.0.9 Perform all tasks in a manner that will minimize disruption of the ongoing daily operations of the City. 2.0.10 Perform certain limited procedures involving required supplementary information mandated by the Governmental Accounting Standards Board as mandated by generally accepted auditing standards. 2.0.11 Provide assistance and consultation to the City by notifying City management about and identifying the impact of, educating staff about, and assisting in the implementation of new GASB and FASB statements. The implementation will be done at a date to be determined by the City even if prior to the required effective date of the statement. Auditing Services Agreement 2017 3