Supplementary audit opinion plan 200708

							Our reference       GGL/HT/WSCC

8 February 2008

Bryan Robinson
County Treasurer                                             Email             helen-
West Sussex County Council                                                     thompson@audit-
County Hall,
Chichester,                                                                    commission.gov.uk
West Sussex

Dear Bryan

Supplementary audit opinion plan 2007/08
You will recall that I issued the initial audit plan for 2007/08 on 21 May 2007 which set out
the work that I proposed in order to satisfy my responsibilities under the Audit
Commission’s Code of Audit Practice. I am required by professional auditing standards to
specify the detailed risks that I need to consider as part of my opinion work. As my initial
audit plan was produced at the start of the financial year for fee purposes, it was not
possible to specify these risks. I am now in a position to do this as the opinion work is
about to commence, and this letter represents my supplementary opinion plan.

Professional auditing standards require me to:

   •    identify the risk of material misstatements in your accounts;

   •    plan audit procedures to address these risks; and

   •    ensure that the audit complies with all relevant auditing standards.

I have therefore considered the additional risks that are appropriate to the current opinion
audit and I have set these out below.

 Risk                                   Residual Audit response
                                        risk
 As part of our planning for 2007/08 Yes           We will walkthrough, document and relying
 we have identified a number of                    on Management Audit where appropriate,
 additional systems which we are                   test the additional systems to gain an
 required to gain an understanding of              understanding of how transactions flow
 under      International    Auditing              through the information system from initiation
 Standards.                                        through to appearing in the financial
                                                   statements.
 The 2007 SORP introduces new           Yes        We will undertake specific substantive testing
 accounting requirements for fixed                 to ensure that the revised SORP
 assets and the associated reserves.               requirements are met.


Audit Commission, 44-45 West Street, Chichester, West Sussex, PO19 1RP
T 0844 798 1717 F 01243 382 692 www.audit-commission.gov.uk
                                                2


 Risk                                     Residual Audit response
                                          risk
 The Council is proposing to make a       Yes       We will address the reasonableness of the
 prior period adjustment in relation to             prior period adjustment through our month 9
 Voluntary Aided Schools.                           work and undertake substantive testing as
                                                    part of our post statement work.
 There were a significant number of       Yes       As part of our pre-statements work we will
 minor amendments required to the                   follow-up the recommendations made in the
 statements in 2006/07. In addition, we             Final Accounts Memo to ensure that the
 experienced problems with the                      issues identified are being addressed prior to
 timeliness of responses to audit                   the preparation of the statements.
 queries during our visit.
                                                    There is an audit protocol in place for
                                                    2007/08 to ensure that the accounts and
                                                    audit process is managed better this year.



In my original audit plan, the estimated fee for the opinion audit was based on my best
estimate at the time and agreed at £145,000. Having considered the above risks I remain
satisfied that the original estimate is appropriate and, subject to my comments below, I do
not propose to adjust the fee.

I will keep you updated as the audit progresses, however this fee is dependent on the
following conditions:

   •    internal audit deliver the testing of material systems on a timely basis to enable us
        to place reliance on their work;

   •    we do not identify any additional systems which generate material items within the
        financial statements;

   •    the issues highlighted in the Annual Governance Report and Final Accounts
        Memorandum have been addressed for the 2007/08 audit; and

   •    we are able to gain assurance from the operation of key controls in the material
        systems.

I have arranged a meeting with you on 11 February to discuss this letter and I look forward
to seeing you.

Yours sincerely




Helen Thompson
District Auditor