Laserfiche WebLink
• • <br />What degree of assurance do <br />auditors seek to provide? <br />The goal of the auditor is to obtain reasonable as- <br />surance, not absolute certainty, that the finan- <br />cial statements are fairly presented. <br />Consequently, auditors do not attempt to ensure <br />that all of the data contained in financial state- <br />ments are 100 percent accurate, but rather that <br />the financial statements are free from any mate- <br />rial misstatements. Accordingly, auditors typi- <br />cally do not attempt to examine individually <br />every transaction or event affecting a govern- <br />ment's financial statements. Instead, auditors <br />perform their work on a "test basis," much as <br />those conducting opinion surveys interview only <br />a random sample of those whose opinions they <br />are seeking to measure and report. <br />What is the independent auditor's <br />report on the Schedule of <br />Expenditures of Federal Awards? <br />Governments subject to a Single Audit are re- <br />quired to prepare a Schedule of Expenditures of <br />Federal Awards. This schedule, like the financial <br />statements, represents management's asser- <br />tions. While auditors are not required to audit <br />the schedule per se, they are required to express <br />an opinion on whether it is fairly presented in all <br />material respects in relation to the basic finan- <br />cial statements. <br />12 AN ELECTED OFFICIAL'S GUIDE <br />TO AUDITING <br />37 <br />