The purpose of an audit is providing an objective independent examination of the financial information, which increases the value and credibility of the financial information produced by management. This increases user confidence in the financial information, reduce investor risk. An audit is not designed to provide absolute assurance, being based on sampling and not the testing of all transactions and balances; rather it is designed to reduce the risk of a material financial statement misstatement whether caused by fraud or error.
Florida State Statutes require an annual audit of the Town of Lake Hamilton finances -
218.39 Annual financial audit reports.—
(1) If, by the first day in any fiscal year, a local governmental entity, district school board, charter school, or charter technical career center has not been notified that a financial audit for that fiscal year will be performed by the Auditor General, each of the following entities shall have an annual financial audit of its accounts and records completed within 9 months after the end of its fiscal year by an independent certified public accountant retained by it and paid from its public funds:
(a) Each county.
(b) Any municipality with revenues or the total of expenditures and expenses in excess of $250,000, as reported on the fund financial statements.
(c) Any special district with revenues or the total of expenditures and expenses in excess of $100,000, as reported on the fund financial statements.
(d) Each district school board.
(e) Each charter school established under s. 1002.33.
(f) Each charter technical center established under s. 1002.34.
(g) Each municipality with revenues or the total of expenditures and expenses between $100,000 and $250,000, as reported on the fund financial statements, which has not been subject to a financial audit pursuant to this subsection for the 2 preceding fiscal years.
(h) Each special district with revenues or the total of expenditures and expenses between $50,000 and $100,000, as reported on the fund financial statement, which has not been subject to a financial audit pursuant to this subsection for the 2 preceding fiscal years.