The audit shall be designed to accomplish the following objectives To determine whether the financial statements present fairly the respective financial position of the governmental activities, business-type activities, discretely presented component unit, each major fund, and the aggregate remaining fund information and the respective changes in financial position and cash flows, where applicable, thereof [and the respective budgetary comparison for each governmental funds] in conformity with accounting principles generally accepted in the United States of America. In addition, to determine whether the financial statements presented as supplementary information present fairly the financial position of each of the government's nonmajor governmental, nonmajor enterprise, and fiduciary funds and the respective changes in financial position and cash flows, where applicable, thereof in conformity with accounting principles generally accepted in the United States of America. The audit shall include all work required to render an opinion including work required related to all component units. 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...
