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incluc c.—, vi ntloo to to II?liar`. ve!11011US ill Ca!i F'tS''I?.�illc.'I! t-Ull'.:it:)tti' ..i !(I l'lllkli l:. i-? f)�Jta-li?ilk 2i7 C1''iiC�i-. Qualifications, to Piovide, .ki-Ill al AL€Uit and i iinancia i ;1epo t Se -vices La Porte Redevelopment Authority 2. Determination of Material Accounts -To ensure adequate coverage of all accounts, the following procedures will be performed: a. A planning materiality worksheet specifically designed for governmental organizations will be completed for all accounts. b. Total assets from the unadjusted trial balance will be used to determine materiality, establish material accounts and to calculate our tolerable misstatement amount by account. c. All balance sheet and income statement captions with dollar amounts greater than or equal to the planning materiality dollar amounts will be considered material accounts. In addition, all accounts assessed to have a high risk of misstatement will be considered material accounts. Risk Assessments in order to plan the nature, timing and extent of substantive audit procedures, we will assess inherent and control risks within the Authority's internal controls for financial accountability. Our audit approach is to assess inherent risks and control risks and then adjust detection risks in order to hold overall risk financial misstatement to an acceptable level. Risk assessment activities include review of board minutes and external agencies' monitoring reports if any; brain -storming on risk factors; making inquiries of management and staff; evaluating controls; developing an audit strategy; planning the nature and timing of necessary audit procedures. Review of Policies and Procedures We will review the Authority's policies and procedures, including accounting, personnel, and investment policies. Our test of transactions and inquiries of the Authority's personnel will include tests of compliance with policies, procedures, laws, and regulations. Substantive Testing and Analytical Procedures Substantive testing will be performed on those material accounts in which our determination of audit risks does not allow us to determine if those accounts are fairly stated. Substantive testing will include analytical procedures, confirmations, examination of documents supporting selected transactions and balances, and other procedures necessary for us to conclude on the fairness of account balances. Final analytical procedures on the Authority's financial statements as a whole will also be performed, to ensure that the final draft of the financial statements is supported by the results of our audit procedures. MCCONNEL.L &_ JONES LIT 10