Annually, beginning in January, our Firm develops and updates audit programs for all of our Municipal audit clients. This process involves the Firm’s Shareholders, Managers, and In-Charge accountants. This process is designed to develop programs which meet all professional standards of the American Institute of Certified Public Accountants, Government Auditing Standards and the Minimum Standards for Audits of Oregon Municipal Corporations.
To help provide timely audit reports, we normally perform interim work during a mutually agreeable time within the last several months of a client’s fiscal year. During interim work, we perform a review of the accounting records in use and conduct an evaluation of internal control as required by generally accepted auditing standards and, when applicable, Government Auditing Standards. Any deficiencies encountered in the accounting records or internal control, together with our recommendations, are discussed with Management at that time. This procedure may permit implementation of corrective action prior to issuance of the audit report and management letter.
The work we perform includes documentation of our understanding of the client’s system of internal accounting controls, initial testing of the processing controls and initial testing of management’s reconciliation procedures for higher risk balance sheet accounts such as cash and investments. If it is determined that the client needs an audit in accordance with the Single Audit Act, we study and evaluate the internal control system governing the federal financial assistance programs and assess control risk. This is performed using checklists and procedures developed through years of experience and the most current authoritative guidance. Samples are taken and tests performed to ensure processing of data in accordance with prescribed policies and procedures and good management practices. Also, we can document a client’s compliance with many of the laws and regulations applicable to a single audit such as allowable cost, Davis-Bacon Act, and procurement procedures. Any problems encountered during our interim tests are discussed with the client at the conclusion of our on-site interim fieldwork.