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Village of Gowanda Audit Proposal For the Year Ended May 31, 2026 Presented by: R.A. Mercer & Co., P.C. (4) Description of the Process and Scope of Services Provided to Meet the Single Audit Requirements The following is a brief outline of our proposed audit management: Prior to the beginning of the assignment there will be a pre-audit consultation in preparation for designing an audit approach through an understanding of the accounting systems and a discussion of any problem areas. Prior to the start of the audit fieldwork, we will schedule a kickoff meeting with Village personnel and our staff members scheduled to perform the audit engagement. The agenda of this meeting will include coordination and scheduling of interaction with Village staff, confirmation procedures, and discussion of other requirements. In planning fieldwork, we will document the Village’s systems of internal control and gather permanent file information. Performance of audit procedures and tests to assess the likelihood of errors in the financial statements would be performed in connection with the documentation of the internal control system. The performance of substantive tests and other procedures as deemed necessary will be undertaken to form our opinion and issue our report on the financial statements. Auditors in the field are instructed to make firm partners aware of any potential recommendations arising during their work. These matters will be reviewed with management by a partner for a determination of the proper disposition. Partner review and supervision in the field assures that these matters and other questions raised during the audit are appropriately communicated for resolution. Through this process, meaningful recommendations can be made and matters of lesser importance may be resolved with the appropriate parties during the audit fieldwork. Field audit and office review of reports and working papers will be in accordance with generally accepted and governmental (Yellow Book) auditing standards. The standards state: e Work is to be adequately planned. e Assistants are to be properly supervised. e An evaluation is to be made of the system of internal control to obtain an understanding for planning the audit and determining the nature, timing, and extent of tests to be performed. e Sufficient, competent, and relevant evidence is to be obtained to afford a reasonable basis for the auditor's opinions, judgments, conclusions, and recommendations. Sampling is an integral part of any audit engagement. With this in mind, we use sampling extensively in testing transactions and account balances for all our audits. We tailor our sampling to the specific population being tested. Our sample sizes generally range in size from twenty-five