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August 9,2021 <br /> City of Decatur <br /> Page 4 <br /> Auditor responsibilities,procedures,and limitations <br /> We will conduct our audit in accordance with U.S.GAAS,the standards for financial audits contained in <br /> Government Auditing Standards,and the Uniform Guidance.Those standards require that we exercise <br /> professional judgment and maintain professional skepticism throughout the planning and performance of the <br /> audit.As part of our audit,we will: <br /> • Identify and assess the risks of material misstatement of the financial statements and material <br /> noncompliance,whether due to fraud or error,design and perform audit procedures responsive to <br /> those risks,and obtain audit evidence that is sufficient and appropriate to provide a basis for our <br /> opinions.The risk of not detecting a material misstatement or a material noncompliance resulting from <br /> fraud is higher than for one resulting from error,as fraud may involve collusion,forgery,intentional <br /> omissions,misrepresentations,or the override of internal control. <br /> • Obtain an understanding of internal control relevant to the audit in order to design audit procedures <br /> that are appropriate in the circumstances,but not for the purpose of expressing opinions on the <br /> effectiveness of the entity'slinternal control.However,we will communicate to you in writing any <br /> significant deficiencies or material weaknesses in internal control relevant to the audit of the basic <br /> financial statements that we have identified during the audit. <br /> • Evaluate the appropriateness of accounting policies used and the reasonableness of significant <br /> accounting estimates made by management,as well as evaluate the overall presentation of the basic <br /> financial statements,including the amounts and disclosures,and whether the basic financial statements <br /> represent the underlying transactions and events in a manner that achieves fair presentation. <br /> • Conclude, based on the audit evidence obtained,whether there are conditions or events,considered in <br /> the aggregate,that raise substantial doubt about the entity's ability to continue as a going concern for a <br /> reasonable period of time. <br /> Although our audit planning has not been concluded and modifications may be made,we have identified the <br /> following significant risk(s)of material misstatement as part of our audit planning: <br /> • Revenue recognition <br /> • Capital assets <br /> We plan to use an auditors'specialist to assist with the evaluation of information technology controls. <br /> There is an unavoidable risk,because of the inherent limitations of an audit,together with the inherent <br /> limitations of internal control,that some material misstatements or noncompliance may not be detected,even <br /> though the audit is properly planned and performed in accordance with U.S.GAAS,Government Auditing <br /> Standards,and the Uniform Guidance.Because we will not perform a detailed examination of all transactions, <br /> material misstatements,whether from (1)errors,(2)fraudulent financial reporting,(3)misappropriation of <br /> assets,or(4)violations of laws or governmental regulations that are attributable to the entity or to acts by <br /> management or employees acting on behalf of the entity,may not be detected. Because the determination of <br /> waste and abuse is subjective,Government Auditing Standards do not require auditors to perform specific <br />