The Town of Pelham will have similar areas of risk as the previous year, auditor Trevor Ferguson of Deloitte told council Monday night.
“We are looking for fraud and looking for rounded numbers. Some other things we’ll be doing is having discussions with management and sending e-mails to council regarding any questions.”
Deloitte service plan highlighted risks for the year-end cut-off, tangible capital assets, year-end accruals, management override of controls, and revenue.
Estimates are always a big area that auditors look at, Ferguson said.
They’ll be using a look-back test of journal entry testing.
It is a very targeted sample, he said.
An audit is designed to search for potential misstatements that, individually or collectively, are material.
“If we were to find a fraud in the audit,” he said, “we wouldn’t wait till the year-end presentation to tell you about it.”
