June 15, 2009 - District of Mission

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District of Mission — 2008 Audit Results and Communication
Page 21
Independence
At the core of the provision of external audit services is the concept of independence. Canadian generally
accepted auditing standards (GAAS) require us to communicate to Council, at least annually, all relationships
between BDO Dunwoody LLP (and its related entities) and District of Mission (and its related entities), that,
in our professional judgment, may reasonably be thought to bear on our independence for the forthcoming
audit of the District of Mission.
In determining which relationships to report, we have considered the applicable legislation and relevant rules
of professional conduct and related interpretations prescribed by the appropriate provincial institute covering
such matters as the following:
• holding of a financial interest, either directly or indirectly in a client;
• holding a position, either directly or indirectly, that gives the right or responsibility to exert
significant influence over the financial or accounting policies of a client;
• personal or business relationships of immediate family, close relatives, partners or retired partners,
either directly or indirectly, with a client;
• economic dependence on a client; and
• provision of services in addition to the external audit engagement.
We have prepared the following comments to facilitate our discussion with you regarding independence
matters.
We are not aware of any relationships between the District of Mission and us that, in our professional
judgment, may reasonably be thought to bear on our independence to date.
GAAS requires that we confirm our independence to Council in the context of the Rules of Professional
Conduct of the Institute of Chartered Accountants of British Columbia as our governing body. Accordingly,
we hereby confirm that we are independent with respect to the District of Mission within the meaning of the
Rules of Professional Conduct as of January 9, 2009.
Responsibilities of Management and of the Auditor
It is important for Council to understand the responsibilities that rest with the District of Mission and its
management and those that belong to the auditor:
• Management is responsible for the preparation of the financial statements, which includes
responsibilities related to internal control, such as designing and maintaining accounting records,
selecting and applying accounting policies, safeguarding assets and preventing and detecting error
and fraud;
• The auditor's responsibility is to express an opinion on the financial statements based on an audit
thereof;
• An audit is performed to obtain reasonable, but not absolute, assurance as to whether the financial
statements are free of material misstatement and, owing to the inherent limitations of an audit, there is
an unavoidable risk that some misstatements of the financial statements will not be detected
(particularly intentional misstatements concealed through collusion), even though the audit is
properly planned and performed;
• The audit includes:
o assessing the risk that the financial statements may contain misstatements that, individually or
in the aggregate, are material to the financial statements taken as a whole;