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In preparing the financial statements, management is required to evaluate whether there are <br />conditions or events, considered in the aggregate, that raise substantial doubt about the City of <br />Lino Lakes, Minnesota's ability to continue as a going concern for twelve months beyond the <br />financial statement date, including any currently known information that may raise substantial <br />doubt shortly thereafter. <br />Auditor's Responsibilities for the Audit of the Financial Statements <br />Our objectives are to obtain reasonable assurance about whether the financial statements as a <br />whole are free from material misstatement, whether due to fraud or error, and to issue an <br />auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but <br />is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance <br />with generally accepted auditing standards and Government Auditing Standards will always <br />detect a material misstatement when it exists. The risk of not detecting a material misstatement <br />resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, <br />forgery, intentional omissions, misrepresentations, or the override of internal control. <br />Misstatements are considered material if there is a substantial likelihood that, individually or in <br />the aggregate, they would influence the judgment made by a reasonable user based on the <br />financial statements. <br />In performing an audit in accordance with generally accepted auditing standards and <br />Governmental Auditing Standards, we: <br />• Exercise professional judgment and maintain professional skepticism throughout the <br />audit. <br />• Identify and assess the risks of material misstatement of the financial statements, whether <br />due to fraud or error, and design and perform audit procedures responsive to those risks. <br />Such procedures include examining, on a test basis, evidence regarding the amounts and <br />disclosures in the financial statements. <br />• Obtain an understanding of internal control relevant to the audit in order to design audit <br />procedures that are appropriate in the circumstances, but not for the purpose of <br />expressing an opinion on the effectiveness of the City of Lino Lakes, Minnesota's internal <br />control. Accordingly, no such opinion is expressed. <br />• Evaluate the appropriateness of accounting policies used and the reasonableness of <br />significant accounting estimates made by management, as well as evaluate the overall <br />presentation of the financial statements. <br />• Conclude whether, in our judgment, there are conditions or events, considered in the <br />aggregate, that raise substantial doubt about the City of Lino Lakes, Minnesota's ability to <br />continue as a going concern for a reasonable period of time. <br />We are required to communicate with those charged with governance regarding, among other <br />matters, the planned scope and timing of the audit, significant audit findings, and certain internal <br />control related matters that we identified during the audit. <br />16 <br />