b. Financial Section. (1) Audit Report. Are the financial statements in the report audited by an inde- pendent CPA, state auditors, or auditors employed by the government being audited? Does the auditor indicate who is responsible for preparing the financial statements? Does the auditor express an opinion that the state- ments are "in accordance with generally accepted accounting principles applicable to governmental entities in the United States" or some other phrase? Is the opinion qualified in some manner, disclaimed, or adverse? Does the auditor indicate that the opinion covers the basic financial state- ments or that plus combining statements? (2) Basic Financial Statements. Does the CAFR contain both government- wide financial statements and fund statements? (3) Notes to the Financial Statements. How many notes follow the required basic financial statements? Is there a phrase at the bottom of the basic financial statements indicating that the notes are an integral part of the financial statements? (4) Other Supplementary Information. Following the notes to the finaneial statements, does the CAFR provide other supplementary information such as combining and individual fund statements? (5) Management's Discussion and Analysis (MD&A. Does the CAFR con- tain an MD&A? If so, where is it located and what type of information does it contain? c. Statistical Tables Examine these tables so that you can refer to them in discussions accompa ubsequent chapters. For example, is multiyear information provided about financial trends, revenue capacity, debt capaeity, demographic and eco nying s nomic trends, and operating activities? mage rc
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