To audit the general purpose financial statements of the College and KLCC Radio Broadcasting station accordance with generally accepted auditing standards and the standards for financial audits in effect at the time, such as those currently contained in Government Auditing Standards, issued by the Comptroller General of the United States, the Single Audit Act of 1984, as amended, and the provisions of Office of Management and Budget (OMB) Circular A-133, if applicable, Audits of State and Local Governments and prescribed Minimum Standards for Audits of Oregon Municipal Corporations, as applicable for audits of the college. b. The audit should help to determine whether the financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information and the respective changes in financial position and, where applicable, cash flows, thereof [and the respective budgetary comparison for the (indicate the major governmental funds involved)] in conformity with accounting principles generally accepted in the United States of America. In addition, to determine whether the combining and individual nonmajor fund financial statements are fairly stated in all material respects in relation to the basic financial statements taken as a whole. c. To obtain an understanding of the components of internal control that is 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 controls 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 controls, when applicable, and subsequent procedures. In acquiring an understanding of and assessing internal control, the auditor should consider computer controls as well as the controls over manual portions of the system
