AUDIT SERVICES

2026-11-03

The audit shall be designed to accomplish the following objectives : 1 . To determine whether the financial statements present fairly , in all material respects , the respective financial position of the governmental activities , the business - type activities , the aggregate discretely presented component units , each major fund , and the aggregate remaining fund information and the respective changes in financial position and , where applicable , cash flows , thereof [ and the respective budgetary comparison for the ( indicate the major governmental funds involved )] in conformity with accounting principles generally accepted in the United States of America . In addition , to determine whether the combining and individual nonmajor fund financial statements are fairly stated in all material respects in relation to the basic financial statements taken as a whole . ( Note 1 : AAG - SLG , par . 16 . 04 allows under certain circumstances the combining of the two aggregate opinion units – the one for the aggregate discretely presented component units and the one for the aggregate remaining fund information – into a single opinion unit . If this is desired reference to these terms should not be used . Instead , the term “ aggregate discretely presented component unit and remaining fund information ” should be used .) ( Note 2 : If the government desires an opinion on the basic financial statements and on the combining and individual fund financial statements presented as supplementary information , the last sentence above should be replaced with the following ( modified as appropriate ): In addition , to determine whether the financial statements presented as supplementary information present fairly , in all material respects , the respective financial position of each of the government ’ s nonmajor governmental , nonmajor enterprise , internal service , and fiduciary funds and the respective changes in financial position and cash flows , where applicable , thereof in conformity with accounting principles generally accepted in the United States of America . 2 . To obtain an understanding of the five components of internal control that is sufficient to assess the risks of material misstatement of the financial statements whether due to error or fraud , and to design the nature , timing , and extent of further audit procedures . Because an audit of a government ’ s financial statements is based on opinion units , the auditor ’ s consideration of internal control in assessing the risks of material misstatement should address each opinion unit . The auditor should obtain a sufficient understanding by performing risk assessment procedures to ( a ) evaluate the design of controls and ( b ) determine whether they have been implemented . The auditor should use such knowledge to identify types of potential misstatements ; consider factors that affect the risks of material misstatement ; and design tests of controls , when applicable , and subsequent procedures . In acquiring an understanding of and assessing internal control , the auditor should consider computer controls as well as the controls over manual portions of the system . 3 . To plan and perform the audit to obtain reasonable assurance about whether the financial statements , including note disclosures , are free of material misstatement , whether caused by error or fraud , and material misstatements arising from illegal acts that have a direct and material effect on the determination of financial statement amounts . Illegal acts are defined in auditing standards as violations of laws or governmental regulations . Although not explicitly stated in auditing standards , the phrase “ laws and governmental regulations ” generally has been interpreted to implicitly include the provisions of contract and grant agreements . U . S . Auditing Standards – AICPA ( Clarified ) AU - C Section 250 paragraph . 14 requires the auditor to consider laws and regulations that are generally recognized by auditors to have a direct and material effect on the determination of financial statement amounts . The auditor ’ s responsibility to detect and report misstatements resulting from illegal acts having a direct and material effect on the determination of financial statement amounts is the same as that for misstatements caused by error or fraud . In addition , the auditor should be aware of the possibility that illegal acts that may , in particular circumstances , be regarded as having material but indirect effects on financial statements may have occurred . If specific information comes to the auditor ’ s attention that provides evidence concerning the existence of possible illegal acts that could have a material indirect effect on the financial statements , the auditor should apply audit procedures specifically directed to ascertaining whether an illegal act has occurred . ( Additional Requirement for Audits in Accordance with Government Audit Standards ) 4 . To provide reasonable assurance of detecting material misstatements that result from violations of provisions of contracts or grant agreements that could have a direct and material effect on the determination of financial statement amounts or other financial data significant to the audit objectives . If specific information comes to the auditor ’ s attention that provides evidence concerning the existence of possible violations of provisions of contracts or grant agreements that could have a material indirect effect on the financial statements , the auditor should apply audit procedures specifically directed to ascertaining whether such violations have occurred . If during the course of the audit , auditors become aware of abuse that could be quantitatively or qualitatively material to the financial statements or other financial data significant to the audit objectives , the auditor should apply audit procedures specifically directed to ascertain the potential effect on the financial statements or other financial data significant to the audit objectives .

Georgia

2026-04-29