Laserfiche WebLink
October 14,2016 <br /> City of Decatur <br /> Page 4 <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 /> abuse is subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of <br /> detecting abuse. <br /> In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental <br /> regulations that do not have a direct and material effect on the financial statements or on major programs. <br /> However,we will inform the appropriate level of management and those charged with governance of any <br /> material errors,fraudulent financial reporting,or misappropriation of assets that come to our attention. We will <br /> also inform the appropriate level of management and those charged with governance of any violations of laws <br /> or governmental regulations that come to our attention, unless clearly inconsequential, and of any material <br /> abuse that comes to our attention.We will include such matters in the reports required for a single audit. <br /> In making our risk assessments,we consider internal control relevant to the entity's preparation and fair <br /> presentation of the basic financial statements and compliance in order to design audit procedures that are <br /> appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the <br /> entity's internal control.Tests of controls may be performed to test the effectiveness of certain controls that we <br /> consider relevant to preventing and detecting fraud or errors that are material to the financial statements and <br /> to preventing and detecting misstatements resulting from noncompliance with provisions of laws, regulations, <br /> contracts, and grant agreements that have a material effect on the financial statements. Our tests, if performed, <br /> will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no <br /> opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards. <br /> As required by the Uniform Guidance, we will perform tests of controls over compliance to evaluate the <br /> effectiveness of the design and operation of controls that we consider relevant to preventing or detecting <br /> material noncompliance with the direct and material compliance requirements applicable to each major federal <br /> award program. However, our tests will be less in scope than would be necessary to render an opinion on those <br /> controls and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to the <br /> Uniform Guidance. <br /> An audit is not designed to provide assurance on internal control or to identify deficiencies, significant <br /> deficiencies, or material weaknesses in internal control. However, we will communicate to you in writing <br /> significant deficiencies or material weaknesses in internal control relevant to the audit of the basic financial <br /> statements that we identify during the audit that are required to be communicated under AICPA professional <br /> standards, Government Auditing Standards, and the Uniform Guidance. <br /> As part of obtaining reasonable assurance about whether the financial statements are free of material <br /> misstatement, we will perform tests of the entity's compliance with the provisions of laws, regulations, <br /> contracts,and grant agreements that have a material effect on the financial statements. However,the objective <br />