Outdoor Power Equipment Institute of Canada Page 3 We have used an overall materiality of $19,600. Materiality for the prior year's audit was $19,900. This amount was used to: Plan and perform the audit; and, Evaluate the effects of identified and uncorrected misstatements on the audit procedures performed as well as on the financial statements. The materiality amount was reassessed prior to the end of the engagement to ensure it remained appropriate. Risk Assessment Our approach includes steps to provide for an ongoing identification of risks and is flexible to allow adjustment when additional risks are identified. Since these risks may impact our audit objectives, we consider materiality in our planning to focus on those risks that could be significant to you financial reporting. We compile information from a variety of sources to identify risks to OPEIC's financial reporting process that may require attention. Our preliminary risk assessment took into account:
Key business developments and transactions;
Current business, regulatory and accounting pronouncements and developments; Key management strategies and business plans; Prior years' audit results; and Areas of significant judgment and risk. Our audit planning activities and our preliminary identification of audit risks enables us to set the scope of our audit and to design audit procedures tailored to the identified risks to financial reporting. As we perform our audit, we will update our risk assessment and keep the Board of Directors and management informed of significant changes to our risk assessment and any additional significant risks that are identified. Consideration of the Risk of Fraud Fraudulent acts include the deliberate failure to record transactions, forgery of records and documents, and intentional misrepresentations to our audit engagement team. Fraud may include intentional acts by management or employees acting on behalf of OPEIC, as well as employee fraud if management or employees are involved in actions that defraud OPEIC. We do not assume that management is dishonest nor do we assume unquestioned honesty. Rather, in accordance with generally accepted auditing standards, we exercise professional skepticism and recognize that the conditions we observe and evidential matter we obtain, including that obtained from prior audit engagements, need to be objectively evaluated to determine whether the financial statements are presented fairly in all material respects.
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