Outdoor Power Equipment Institute of Canada Page 4
Maintaining an attitude of professional skepticism means that we carefully consider the reasonableness of the responses we receive to our inquiries from those charged with governance, and evaluate other information obtained from them in light of the evidence we obtain during the audit. We consider whether any misstatement or control deficiency that we identify may be indicative of fraud and what the implications of fraud and significant error are in relation to other aspects of the audit, particularly the reliability of management representations. It is management's responsibility to detect and prevent fraud. The Board of Directors has oversight responsibilities for management's efforts to create a strong internal control environment, including the design and implementation of anti-fraud programs and controls. During the audit, should we become aware that an act of fraud may have occurred, other than one considered clearly inconsequential, we will communicate this information directly to the Board of Directors. Audit Procedures We performed a substantive audit. Our substantive audit procedures consist of a tailored combination of analytical procedures and detailed tests of transactions and balances; these procedures take into account the results of our understanding of OPEIC's accounting processes and internal controls and are designed to enable us to obtain reasonable assurance that the financial statements are free from material misstatements. To obtain this assurance, the misstatements we identify while performing substantive auditing procedures will be considered in relation to the financial statements as a whole. Any misstatements that we identify, other than very small misstatements, will be reported to management and the Board of Directors. Significant Audit Risks
Our audit did not identify any areas which we considered as significant audit risks. Other audit risks, which were evaluated as part of the engagement were as follows: # Areas of Risk Our Audit Response
Our Conclusion
1 Management override of internal controls
We carried out procedures to gain an understanding of the OPEIC's internal control environment, including inquiries of management, review of journal entries and review of management estimates.
No issues to report.
This is a presumed fraud risk under the Canadian auditing standards, which often relates to the use of journal entries, estimates, related parties or unusual transactions.
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