GA Fiscal Year Audit Engagement Services

2026-11-03

1 . To determine whether the financial statements present fairly , in all material respects , the respective financial position of the governmental activities and the changes in financial position and , the budgetary comparison for the General Fund in conformity with accounting principles generally accepted in the United States of America . In addition , to determine whether the combining and individual non - major fund financial statements are fairly stated in all material respects in relation to the basic financial statements taken as a whole . 2 . To obtain an understanding of the five components of internal control that are 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 control 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 control , when applicable , and subsequent procedures . In acquiring an understanding of and assessing internal control , the auditor should consider computer control as well as the control 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 . The AICPA Codification of Statements on Auditing Standards , Section AU 317 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 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 .

Georgia

2026-05-10