a. Identified pertinent issues and risks. b. Anticipated methodology, including: i. Offerors must provide comprehensive narrative statements that set out the methodology it intends to employ. Offerors must illustrate how the methodology will serve to accomplish the work and provide the deliverables described in the scope of work within the State’s audit schedule. ii. Describe the audit approach, including extent of testing of internal control, analytical procedures, and other substantive tests for significant account balances and classes of transactions. iii. Define the firms approach to audit risk and materiality including anticipated percentages or amounts to be used for materiality, performance materiality, and tolerable misstatement. Also address if different percentages or amounts are anticipated for different account balances or classes of transactions. c. Management plan for the audit, including: i. A narrative or organizational chart that describes the organization of the audit team. The organizational chart must illustrate the lines of authority, designate the individual responsible and accountable for the completion of each component and deliverable of the RFP. d. Estimated hours by the firm’s segmentation such as internal control, information systems, compliance, substantive testing, and Federal Single Audit.
