Sample Letter of Tender Invitation to Auditors

DATE ABC Accounting Firm 123 Main St. Anyplace, Canada A1B 2C3 Dear Sir/Madam The Chief and Council of the Red Feather First Nation is considering the appointment of an Auditor for the fiscal year ending March 31, ____. The Chief and Council have instructed me to obtain proposals from Auditors who may be interested in the appointment. The Red Feather Band is located at Eaglesnest, CAN. The statement of revenue for the Band at March 31, _____ showed gross revenue for the year of over $___ million. A condition of appointment would be a guarantee by the Auditor that the Audit would be completed on or before June 30, ____, providing that the Band has supplied the required information in a timely fashion. If you are interested in receiving additional information on the Band and our accounting system, please contact the following: ___________________________ (Band Manager) - Phone number ___________________________ (Band Financial Controller) - Phone number We request that all tenders be submitted to the Band office for review by no later than (date) . This will allow an appointment to be made at the next Band Council meeting. Thank you for your interest. Yours truly,

________________________________ Band Manager Red Feather First Nation

Sample Letter of Appointment to Auditor

DATE ABC Accounting Firm 123 Main St. Anyplace, Canada A1B 2C3 Dear ________________: The Chief and Council of the Red Feather First Nation has appointed your firm to undertake an Audit of our Bands books and accounts for the fiscal year ending March 31, ____. The audited financial statement will be used to report to our Band members regarding the utilization of Band funds, and to demonstrate to funding agencies that financial contributions to the Band were used for the purposes intended. As Auditor for the Red Feather Band, you will have access at all reasonable times to all records, documents, books, accounts, and vouchers you consider necessary to report as requested. You will be required to complete the audit complement, and follow the audit guidelines in the Indian and Northern Affairs Canada Accounting Guide for Indian Bands in Canada. Your examination should enable you to report whether, in your opinion, the financial statement of our Band Operations Fund presents fairly the Bands financial position and the results of operations for the period under review, in accordance with generally accepted accounting principles, and applied on a basis consistent with that of the preceding period. You are also requested to make any other recommendations which you consider advisable regarding the Bands financial accounting system. We request that your examination be scheduled so as to enable the Band Council to discuss and distribute the financial statement before June 30th. Band Council acceptance of the audited financial statement will be evidenced by the signatures of the Chief, the Band Manager, and a quorum of Councillors, at the bottom of the balance sheet. Acknowledgment of this appointment at your earliest convenience will be greatly appreciated. Sincerely

Chief _________________________ Red Feather First Nation

Sample Letter of Engagement from Auditor

Red Feather First Nation PO Box 1 Eaglesnest, CAN A1A 0A0 DATE Dear ____________: The purpose of this letter is to outline the nature of my involvement with the financial statements of Red Feather First Nation for the year ending (date) . As agreed, I will conduct a review, consisting primarily of enquiry, analytical procedures and discussion in accordance with generally accepted standards for review engagement. Unless unanticipated difficulties are encountered, my report will be substantially in the following form: ______________________________________________________________________ ______________________________________________________________________ This review does not constitute an audit. For example, it does not contemplate a study and evaluation of internal control, tests of accounting records and of responses to enquiries by obtaining audit evidence through inspection, observation, or confirmation and other procedures ordinarily performed during an audit. Accordingly, this review is not intended to be, and will not result in the expression of an audit statutory or other audit requirement. I am not accepting this engagements in the minutes of your shareholders meetings. You may wish to obtain legal advice concerning statutory (or contractual) audit requirements. It is understood that: (a) you will provide the information required for me to complete this review; (b) the responsibility for the accuracy and completeness of the representations in the financial statements remains with you; (c) if my name is to be used in connection with the financial statements, you will attach my review engagement report when distributing the financial statements to third parties; and (d) each page of the financial statements will be conspicuously marked unaudited. This engagement cannot be relied upon to prevent or detect error and fraud and other irregularities. I wish to emphasize that responsibility for the prevention and detection of error and fraud and other irregularities must remain with management. The arrangements outlined in this letter will continue in effect from year to year unless changed by us. If you have any questions about the contents of this letter, please raise them with me. If the services outlined in accordance with your requirements and if the above terms are acceptable to you, please sign the copy of this letter in the space provided and return it to me. I appreciate the opportunity of continuing to be of service to your organization. Sincerely ______________________________________ (Name and company)

On behalf of the Red Feather First Nation, I accept the terms outlined in this letter. Signature Position Date

Sample Letter from the Auditor upon Completion of the Audit

Red Feather First Nation PO Box 1 Eaglesnest, CAN A1A 0A0 June 30, _____ To Chief and Council: We have audited the balance sheet of the Red Feather First Nation as of March 31, ____ and the statements of revenue and expenses, and changes in the financial position for the year then ended. These financial statements are the responsibility of the Red Feather First Nations management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. In our opinion, these financial statements present fairly, in all material respects, the financial position of the Red Feather First Nation as at March 31, ____ and the results of its operations and the changes in its financial position for the year then ended in accordance with generally accepted accounting principles. ________________________ Chartered Accountant

Sample Letter of Receipt of the Audit from INAC

Red Feather First Nation E-4203-???(PAR) PO Box 1 Eaglesnest, CAN A1A 0A0

Audited Financial Statements - (fiscal year) Thank you for the timely provision of a copy of your (fiscal year) Consolidated Audited Financial Statements to the regional office. These statements were received by the department on (date) and the following work has been completed:
a.

a preliminary review indicates that the financial statements meet the requirements of the Year End Reporting Handbook (latest edition); and funds flowed to your First Nation during fiscal year (specify) have been reconciled to amounts reported in the audited financial statements. No discrepancies were noted in this area.

b.

These financial statements will now be presented to the Audit Review Committee in order to assess the financial health of your First Nation and evaluate funding provided through a contribution authority, as applicable. This meeting is tentatively scheduled for (date) and your Council is invited to participate in this process. Please advise your Funding Services Officer on or before (two weeks prior to meeting date), if you would like to be in attendance. Yours truly,

Name Coordinator, Audit Review Process Indian and Inuit Affairs (Region)