Laserfiche WebLink
are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness <br /> of the entity's internal control.However,we will communicate to you in writing any significant deficiencies <br /> or material weaknesses in internal control relevant to the audit of the financial statements that we have <br /> identified during the audit. <br /> •Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting <br /> estimates made by management,as well as evaluate the overall presentation of the financial statements, <br /> including the amounts and disclosures,and whether the financial statements represent the underlying <br /> transactions and events in a manner that achieves fair presentation. <br /> •Conclude,based on our evaluation of audit evidence obtained,whether there are conditions or events, <br /> considered in the aggregate,that raise substantial doubt about the entity's ability to continue as a going <br /> concern for a reasonable period of time. <br /> Although our audit planning has not been concluded and modifications may be made,we have identified <br /> the following significant risk(s)of material misstatement as part of our audit planning: <br /> •Management override of controls <br /> •Revenue recognition/cutoff related to taxes,other than property taxes,and utility billings <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, <br /> even though the audit is properly planned and performed in accordance with U.S.GARS,Government <br /> Auditing Standards,and the Uniform Guidance.Because we will not perform a detailed examination of all <br /> transactions,material misstatements,whether from(1)errors,(2)fraudulent financial reporting,(3) <br /> misappropriation of assets,or(4)violations of laws or governmental regulations that are attributable to the <br /> entity or to acts by management or employees acting on behalf of the entity,may not be detected.Because <br /> the determination of waste and abuse is subjective, Government Auditing Standards do not require <br /> auditors to perform specific procedures to detect waste or abuse in financial audits nor do they expect <br /> auditors to provide reasonable assurance of detecting waste or abuse. <br /> In addition,an audit is not designed to detect immaterial misstatements or violations of laws or <br /> governmental regulations that do not have a direct and material effect on the financial statements or on <br /> major programs.However,we will inform the appropriate level of management and those charged with <br /> governance of any material errors,fraudulent financial reporting,or misappropriation of assets that come <br /> to our attention.We will also inform the appropriate level of management and those charged with <br /> governance of any violations of laws or governmental regulations that come to our attention,unless clearly <br /> inconsequential.We will include such matters in the reports required for a single audit. <br /> Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to <br /> preventing and detecting fraud or errors that are material to the financial statements and to preventing and <br /> detecting misstatements resulting from noncompliance with provisions of laws,regulations,contracts,and <br /> grant agreements that have a material effect on the financial statements.Our tests,if performed,will be less <br /> in scope than would be necessary to render an opinion on internal control and,accordingly,no opinion will <br /> Page 4 of 12 <br />