An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements of the Village of South Holland. These statements include governmental activities, business-type activities, discretely presented component unit, each major fund, and the aggregate remaining fund information of the Village of South Holland.
The procedures selected depend on the auditor’s judgment. Procedures include the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Village’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Village’s internal control. An audit also includes evaluating how appropriate accounting policies are, and how reasonable accounting estimates are made by management, as well as evaluating the overall presentation of the financial statements.