Riverside City Council
January 18, 2022

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1 City of Riverside Financial Audit
June 30, 2021
www.lslcpas.com
Audit Responsibilities and Process
• LSL has been engaged by the City to perform a financial audit. • Testing of account balances
• Consideration of your current internal controls
• Internal controls are those policies and procedures in place to safeguard the assets of the City and to detect and correct any material errors arising in the accounting system of the City. 1 2
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Audit Process and Report
• Interim Audit (June)
– Planning
– Inquiry and documentation
– Internal controls
• Year-End Audit (September)
– Account analysis
– Confirmations and Cut-off procedures
• Annual Comprehensive Financial Report
– Introductory Section (Transmittal Letter)
– Financial Section (Audit Report, MD&A, Statements and Footnotes) – Statistical Section
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The Financial Audit and
Reasonable Assurance
• The goal of the financial audit was to obtain reasonable – not absolute – assurance that the financial statements are fairly presented.
• The concept of reasonable assurance means that
auditors do not attempt to ensure that all data contained in financial statements are 100 percent accurate; rather, they seek to affirm (on a test basis) that the financial statements are free from material misstatement.
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Audit Opinion
• The audit work was performed in order to render an “opinion” on the financial statements.
– Management is responsible for t he information in the statements – LSL’s opinion indicates the information is fairly stated in accordance with GAAP and is materially correct
• We have issued an “unmodified opinion” on your June 30, 2021 financial statements.
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SAS 115 and Audit
Communication Letter
• Statement on Auditing Standards (SAS) No.115:
– Communicating internal control related matters identified in an audit • Material Weaknesses
• Significant Deficiencies
• No Material Weaknesses
• No Significant Deficiencies
• Audit Communication Letter (SAS No. 114)
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Summary
• LSL has been engaged to perform a financial audit
• An Unmodified Opinion was rendered on the Annual
Comprehensive Financial Report
• The SAS 115 and Audit Communication Letters were
issued along with the audited financial statements
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