Audit Process
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The Feb. 6 article (“Secret Meetings Heighten Frustration on O.C. Crisis”) refers to a copy of a “draft audit” of the county’s finances by KPMG Peat Marwick LLP. Unfortunately, there is no such thing as a draft audit, and we believe the statement deserves clarification.
It is our understanding that the “draft” document to which you refer is Orange County’s unaudited financial statement. This draft financial statement was prepared by the county. It is important for readers not to confuse a financial statement (draft or final) with an independent auditor’s written opinion about that financial statement.
An independent audit of an organization’s financial statements is a process. It culminates in a written opinion to the client. Before issuing its opinion, the independent auditor must not only complete the audit, but also examine the client’s financial statement. In the case of Orange County, neither event has yet occurred.
The independent audit of the county’s draft financial statements has not been completed. KPMG’s audit was indefinitely halted at the county’s request, and contrary to your article, we have not issued any opinion, in draft or final form, concerning the county’s financial statements.
JOHN R. MILLER
National Director Assurance
Public Services
KPMG Peat Marwick, New York
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