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Indian River County, Florida 1 29 Audit approach ENGAGEMENT SEGMENTATION AND HOURS SAMPLING TECHIQUES We anticipate the use of sampling during our audit of the County. The extent to which we use sampling will depend on the account activity level and our professional judgment Typically, we use sampling to test accounts with numerous, small balances when it is not practical or cost-efficient to examine 100 percent of the details of the account. There are two general approaches to audit sampling. non -statistical and statistical. Both approaches require that the auditor use professional judgment in planning, performing and evaluation of a sample. The typical sample size will range from 10 - 80 transactions based on the method used. USE OF AUDITING SOFTWARE We recognize that in order to provide maximum value to our clients, audit efficiency is of utmost importance. We have developed a proprietary system for reviewing financial statements and workpapers to maximize the benefits of technology. In fact, the technical review principal for your engagement, Stephen Blann, has held various roles within the Firm related to technology services, including Technology Champion, Governmental Accounting and Assurance Group; Member of the Information Technology Steering Committee and Technology Utilization Committee; and firm trainer. He is highly skilled in electronic data extraction and analysis, as well as custom application programming. In addition, Rehmann has established an Enterprise Risk Management ("ERM") division dedicated to internal controls and security in the electronic data processing area. We use technology every day to improve profitability, efficiency and the level of service provided to our clients. We continuously invest in technology, its implementation and employee training. Our clients benefit from the efficiencies gained in the audit process through the use of this technology. ANALYTICAL PROCEDURES Using the current and prior years' trial balances and the final amended budget, we will perform analytical procedures at the financial statement level. In general, we consider an income statement line item to be reasonable and consistent if it is within either 10 percent of the prior year actual or current year budget. Any financial statement line items with fluctuations outside of these parameters will be selected for additional procedures. We will review fluctuations at a greater level of detail (by general ledger account) and have discussions with management to identify and document the reasons for the change. k`Rehmann Principal Manager Staff Total Plannmg/Risk 200 325 PrimaryFieldwork and Testing 111 15 200 500 725 Financial Statement Tie -out and Review 25 80 100 205 Conclusion and Issuance 5 20 130 225 200 354 tv 1100 SAMPLING TECHIQUES We anticipate the use of sampling during our audit of the County. The extent to which we use sampling will depend on the account activity level and our professional judgment Typically, we use sampling to test accounts with numerous, small balances when it is not practical or cost-efficient to examine 100 percent of the details of the account. There are two general approaches to audit sampling. non -statistical and statistical. Both approaches require that the auditor use professional judgment in planning, performing and evaluation of a sample. The typical sample size will range from 10 - 80 transactions based on the method used. USE OF AUDITING SOFTWARE We recognize that in order to provide maximum value to our clients, audit efficiency is of utmost importance. We have developed a proprietary system for reviewing financial statements and workpapers to maximize the benefits of technology. In fact, the technical review principal for your engagement, Stephen Blann, has held various roles within the Firm related to technology services, including Technology Champion, Governmental Accounting and Assurance Group; Member of the Information Technology Steering Committee and Technology Utilization Committee; and firm trainer. He is highly skilled in electronic data extraction and analysis, as well as custom application programming. In addition, Rehmann has established an Enterprise Risk Management ("ERM") division dedicated to internal controls and security in the electronic data processing area. We use technology every day to improve profitability, efficiency and the level of service provided to our clients. We continuously invest in technology, its implementation and employee training. Our clients benefit from the efficiencies gained in the audit process through the use of this technology. ANALYTICAL PROCEDURES Using the current and prior years' trial balances and the final amended budget, we will perform analytical procedures at the financial statement level. In general, we consider an income statement line item to be reasonable and consistent if it is within either 10 percent of the prior year actual or current year budget. Any financial statement line items with fluctuations outside of these parameters will be selected for additional procedures. We will review fluctuations at a greater level of detail (by general ledger account) and have discussions with management to identify and document the reasons for the change. k`Rehmann