Quality Control Over Governmental Audit Assignments

JAMES L. WHITAKER, P.C. has implemented the following procedures into its system of quality controls over governmental audit assignments to ensure that such assignments are performed in accordance with the proper standards and that accurate and fair results are reported to the various users of the audit reports:

1. Personnel with the proper experience and training are assigned to governmental audit jobs. Personnel are required to obtain a minimum of 80 hours of continuing professional education every two years that will enhance their abilities to perform governmental audits more proficiently.

2. The audit programs that are used on governmental audits are specifically tailored for governmental audits. In addition, a disclosure checklist also specifically tailored for governmental entities is used to ensure all required disclosures are reported.

3. A complete and detailed review of all work papers and reports is performed by the managing owner prior to the issuance of any reports.

4. In accordance with its quality control procedures, JAMES L. WHITAKER, P.C. performs an annual inspection of its quality control system to determine if all its systems and procedures are properly implemented and working. During the inspection, several of the governmental audit jobs are reviewed to determine if the Company's quality controls over such assignments have been properly implemented and followed.

5. In addition to the annual inspection, every 3 years the firm's quality control system is reviewed by an independent CPA firm. The external quality review program is required to select governmental entities for testing to ensure the firm is following appropriate quality control procedures. See the "QC Report" section for our latest external review report performed in October 2019. We received an unqualified report with no exceptions or letter of suggestions.