Contract - Diehl, Evans and Co. - 2010-08-18 Planned Scope and Timing of the Audit (Continued)
Our audit will include obtaining an understanding of the District and its environment. including
internal control, sufficient to assess the risks of material misstatement of the financial statements and to
design the nature, timing and extent of further audit procedures. Material misstatements may result
from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets. or (4) violations of
laws or governmental regulations that are attributable to the District or to acts by management or
employees acting on behalf of the District. We will communicate our significant findings at the
conclusion of the audit.
We expect to begin our audit on approximately September 20. 2010 and issue our report on
approximately November '10. 2010
This information is intended solely for the use of the Board of Directors and management of the Costa
Mesa Sanitary District and is not intended to he and should not be used by anyone other than these
specified parties.
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DDIEHL, EVANS & COMPANY, LLP
, CERTIFIED PUBLIC ACCOUNTANTS&CONSULTANTS
MICHAEL R LUDIN CPA
CRAIGW SPRAKER CPA
A PARTNERSHIP INCLUDING ACCOUNT An'Cl C IRPORATIONS NITIN P PATEL CPA
ROBERT)CALLANAN.CPA
'PHILIP H HOLTKAMP CPA
5 CORPORATE PARR.SUITE 100 'THOMAS MI PERLA WWI CPA
IRVINE.CALIFORNIA 92606-5165 'HARVEY) SCHROEDER CPA
KENNETH K ARIES,CPA
19491399-0600 FAx 19491399-0610 'WILLIAM C PENT] CPA
www diehlevans.com
August 18, 2010 oFESSI< MAnon
To the Board of Directors
Costa Mesa Sanitary District
Costa Mesa, California
We are engaged to audit the financial statements of the Costa Mesa Sanitary District for the year ended
June 30, 2010 Professional standards require that we provide you with the following information
related to our audit.
Our Responsibilities under U.S. Generally Accepted Auditing Standards
Our responsibility as described by professional standards. is to express an opinion about whether the
financial statements prepared by management with your oversight are fairly presented, in all material
respects. in conformity with U.S. generally accepted accounting principles. Our audit of the financial
statements does not relieve you or management of your responsibilities.
Our responsibility is to plan and perform the audit to obtain reasonable, but not absolute. assurance that
the financial statements are free of material misstatement. As part of our audit, we will consider the
internal control of the Costa Mesa Sanitary District. Such considerations will be solely for the purpose
of determining our audit procedures and not to provide any assurance concerning such internal control.
We are responsible for communicating significant matters related to the audit that are, in our
professional judgment, relevant to your responsibilities in overseeing the financial reporting process.
However, we are not required to design procedures specifically to identify, such matters.
Planned Scope and Timing of the Audit
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; therefore. our audit will involve judgment about the number of transactions to be
examined and the areas to be tested.
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