This is where we obtain an understanding of an area’s:
Internal controls over key processes.
The relevant laws, regulations, and policies.
We evaluate this information to determine whether the internal control system, as presented to us, appears to be adequate to mitigate the risks which threaten the accomplishment of the area’s major objectives.
This is where we perform audit testing to determine whether internal controls are functioning effectively and efficiently and whether the area is in compliance with relevant laws, regulations, and policies.
During the prior phases of the audit, we may encounter issues which are potentially reportable items in our audit report. We always try to discuss these issues with management as soon as possible to get management’s thoughts and, if necessary, work together on solutions. When the fieldwork phase of the audit is complete, we prepare a draft audit report which we discuss with management. We then ask management to provide written responses to the report recommendations. The final draft report, encompassing management’s responses, is reviewed and approved at a New Castle County Audit Committee meeting. After that, the report is finalized and becomes a public document.