03-10-1993 Council Agenda - Laserfiche WebLink

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TAUTGES, REDPATH & CO., LTD. Fri-0 °J6L!C ACCOUNT N!.. To the Board of Directors Little Canada Firemen's Relief Association We have audited the combined and individual fund financial statements of the Little Canada Firemen's Relief Association as of and for the year ended December 31, 1992, and have issued our report thereon dated January 25, 1993. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the combined and individual fund financial statements are free of material misstatement. In planning and performing our audit of the combined and individual fund financial statements of the Little Canada Firemen's Relief Association for the year ended December 31, 1992, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the combined and individual fund financial statements and not to provide assurance on the internal control structure. The management of the Little Canada Firemen's Relief Association is responsible for establishing and maintaining an intemal control structure. In fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of combined and individual fund financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation or policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories. • Cash Receipts • Cash Disbursements For the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operations, and we assessed control risk. Page 23