O-2001-2521 - Laserfiche WebLink

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e e Honorable Mayor and City Council, Audit Committee and Management City of La Porte, Texas October 1,2001 Page 4 We will obtain an understanding of the design of the rclevant controls and whether they have been placed in operation, and we will assess control risk. Tests of controls may be perfonned to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the general purpose financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the general purpose financial statements. Tests of controls relative to the general- purpose financial statements are required only if control risk is assessed below the maximum level. Our tests, if performed, will be less in scope than would be necessary to rcnder opinions on internal control and, accordingly, no opinions will be expressed in our report on internal control issued pursuant to Government Auditing Standards. As required by OMB Circular A-] 33, we will perform tests of controls to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements, applicable to each major federal award program. However, our tests will be less in scope than would be necessary to render opinions on those controls and, accordingly, no opinions will be expressed in our report on internal control issued pursuant to OMS Circular A-I33. An audit is not designed to provide assurance on internal control or to identi ty reportable conditions. However, we will inform the governing body or audit committee of any matters involving internal control and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report f:inancial data consistent with the assertions of management in the general purpose financial statements. We will also inform you of any nonreportable conditions or other matters involving internal control, if any, as required by OMB Circular A-I33.