2015-125B - Laserfiche WebLink

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Analytical review Risk assessment and brainstorming 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. At times, this process will identify errors or inconsistencies in posting of transactions, or accruals that still need to be posted (or reversed from the prior year). Based on our preliminary analytical review, certain income statement accounts may be selected for substantive testing because "`. of their significance and/or ease of testing. Common substantive tests over income statement accounts are described later in this appendix. At various times through the year, Rehmann's governmental audit group will meet to discuss risks that are common to Florida governments. The audit team will review the notes from these meetings at the beginning of the County's audit to determine which of these risk factors might be applicable. The team will then use the information provided in the previous steps to identify additional risks and design audit procedures to address such risks. Our government -specific audit programs will be tailored to reflect the planned audit procedures. Consideration of fraud Review of attorney invoices In accordance with Statement on Auditing Standards No. 99: Consideration of Fraud in a Financial Statement Audit, we will make certain inquiries of personnel in various departments and positions to obtain their views about the risks of fraud and how they are addressed. These inquiries are made in the form of written questionnaires which are provided to selected individuals and returned directly to us when completed. In addition, each year the audit team will conduct 2-4 "surprise" procedures that are outside the scope of the typical audit. The use of these unpredictability tests is a requirement of SAS 99. These tests are generally relatively simple and address various internal control, financial statement presentation, and compliance issues. We will discuss any pending or anticipated litigation with upper management and inside counsel and review invoices for attorney services. If items are identified that may require accrual and/or disclosure in the financial statements, we may request written responses to certain inquiries from your attorneys. A pre -drafted letter to send to the attorney will be provided to management for preparation of inquiries, if deemed necessary.