Required Communications
1. Auditor’s Responsibilities Under Generally Accepted Auditing Standards (GAAS) The financial statements are the responsibility of management. Our audit was designed in accordance with auditing standards generally accepted in the United States of America and Government Auditing Standards, and provide for reasonable, rather than absolute, assurance that the financial statements are free of material misstatement. 2. Significant Accounting Policies Management has the responsibility for selection and use of appropriate accounting policies. In accordance with the terms of our engagement letter, we will advise management about the appropriateness of accounting policies and their application. The significant accounting policies used by management are described in the notes to the financial statements and all were appropriate. 3. Auditor’s Judgments About the Quality of Accounting Principles We discuss our judgments about the quality, not just the acceptability, of accounting principles selected by management, the consistency of their application, and the clarity and completeness of the financial statements, which include related disclosures. We have reviewed the significant accounting policies adopted by the Maryland Transportation Authority (MDTA) and have determined that those policies are acceptable accounting policies.
4. Audit Adjustments We are required to inform the MDTA oversight body about adjustments arising from the audit (whether recorded or not) that could in our judgment, either individually or in the aggregate, have a significant effect on the entity’s financial reporting process. We also are required to inform the association’s oversight body about unadjusted audit differences that were determined by management to be, individually and in the aggregate, immaterial. There were no adjustments identified during the audit process. 5. Fraud and Illegal Acts We are required to report to the MDTA’s oversight body any fraud and illegal acts involving senior management and fraud and illegal acts (whether caused by senior management or other employees) that cause a material misstatement of the financial statements.
Our procedures identified no instance of fraud or illegal acts.
6. Material Weaknesses in Internal Controls We are required to communicate all significant deficiencies in the MDTA’s systems of internal controls, whether or not they are also material weaknesses. There were no material weaknesses noted during the audit.
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