Financial audits include financial statement and financial related audits. Financial statement audits provide reasonable assurance that the financial statements of an audited entity present fairly the financial position, results of operations, and cash flows in conformity with generally accepted accounting principles.

Financial related audits determine whether (a) financial information is presented in accordance with established or stated criteria, (b) the entity has adhered to specific financial compliance requirements, or (c) the entity's internal control structure over financial reporting and/or safeguarding assets is suitably designed and implemented to achieve the control objectives. In accordance with the City Charter, an independent accounting firm conducts the financial statement and financial related audits of the City. The Office of the City Auditor coordinates the work of the independent accounting firm. The annual audit determines whether the financial statements fairly present the City's financial condition according to generally accepted accounting principles. The annual financial audit also includes reviews to determine City compliance with laws and regulations, particularly for those programs receiving federal funding. The nature and scope of the financial audits the Office of the City Auditor performs differ significantly from the outside audit of the City's financial statements. The primary emphasis of the financial audits the Office conducts is to assess whether the City's internal control systems ensure the following:

• Resources are used in accordance with laws, regulations, and policies;
  
• Reliable data are obtained, maintained, and properly disclosed in financial and management reports; and
  
• Resources are safeguarded against loss due to fraud, theft, errors, and mismanagement.