Minnesota Statutes require an independent audit for cities with a population over 2,500 residents.
Audit Function
The primary function of the audit is to give an opinion as to whether or not the financial statements are presented accurately. The audit is a series of procedures designed to evaluate the city’s internal controls, to test a representative sample of its financial transactions, and to study the methods used to develop financial statements.
Audit Components
Major components of the audit include the annual financial report, the audit opinion, the management letter and audit recommendations, and the report on legal compliance.
