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Analytical review Using the current and prior years'trial balances and the final <br /> amended budget, we will perform analytical procedures at the <br /> financial statement level. In general,we consider an income <br /> statement line item to be reasonable and consistent if it is within <br /> either 10 percent of the prior year actual or current year budget. <br /> Any financial statement line items with fluctuations outside of <br /> these parameters will be selected for additional procedures. We <br /> will review fluctuations at a greater level of detail (by general <br /> ledger account)and have discussions with management to identify <br /> and document the reasons for the change. At times, this process <br /> will identify errors or inconsistencies in posting of transactions,or <br /> accruals that still need to be posted(or reversed from the prior <br /> year). <br /> Based on our preliminary analytical review,certain income <br /> statement accounts may be selected for substantive testing because <br /> of their significance and/or ease of testing. Common substantive <br /> ' tests over income statement accounts are described later in this <br /> appendix. <br /> Risk assessment and At various times through the year,Rehmann's governmental audit <br /> brainstorming group will meet to discuss risks that are common to Florida <br /> governments. The audit team will review the notes from these <br /> meetings at the beginning of the County's audit to determine <br /> which of these risk factors might be applicable. The team will then <br /> use,the information provided in the previous steps to identify <br /> additional risks and design audit procedures to address such risks. 'I <br /> Our government-specific audit programs will be tailored to reflect <br /> the planned audit procedures. <br /> Consideration of fraud In accordance with Statement on Auditing Standards No. 99: <br /> Consideration of Fraud in a Financial Statement Audit,we will <br /> make certain inquiries of personnel in various departments and <br /> positions to obtain their views,about the risks of fraud and how <br /> they are addressed. These inquiries are made in the form of written <br /> questionnaires which are provided to selected individuals and <br /> returned directly to us when completed. <br /> In addition,each year the audit team will conduct 2-4 "surprise" <br /> procedures that are outside the scope of the typical audit. The use <br /> of these unpredictability tests is a requirement of SAS 99. These <br /> tests are generally relatively simple and address various internal <br /> control,financial statement presentation, and compliance issues. <br /> Review of attorney invoices We will discuss any pending or anticipated'litigation with upper <br /> management and inside counsel and review invoices for attorney <br /> services.If items are identified that may require accrual and/or <br /> disclosure in the financial statements,we may request written <br /> responses to certain inquiries from your attorneys.A pre-drafted <br /> letter to send to the attorney will be provided to management for <br /> preparation of inquiries,if deemed necessary. <br /> 68 <br />