Page 669 - Auditing Standards

As of December 15, 2017
b. In connection with the offering of revenue bonds, the review process you have performed is

substantially consistent with the due diligence review process that you would have performed if
this placement of securities were being registered pursuant to the Act.

In connection with the Official Statement—

1. We are independent certified public accountants with respect to Example City, Any State and its Utility
System under rule 101 of the AICPA's Code of Professional Conduct, and its interpretations and rulings.

2. We have not audited any financial statements of Example City, Any State Utility System as of any date
or for any period subsequent to June 30, 19X5; although we have conducted an audit for the year ended
June 30, 19X5, the purpose (and therefore the scope) of the audit was to enable us to express our opinion

on the financial statements as of June 30, 19X5, and for the year then ended, but not on the financial
statements for any interim period within that year. Therefore, we are unable to and do not express any
opinion on the financial position, results of operations, or cash flows as of any date or for any period

subsequent to June 30, 19X5, for the Example City, Any State Utility System.

3. For purposes of this letter we have read the 19X5 minutes of the meetings of the City Council of

Example City, Any State as set forth in the minutes books as of November 25, 19X5, the City Clerk of
Example City having advised us that the minutes of all such meetings 18 through that date were set forth
therein.

4. With respect to the period subsequent to June 30, 19X5, we have carried out other procedures to
November 25, 19X5, as follows (our work did not extend to the period from November 26, 19X5, to
November 30, 19X5, inclusive):

We have inquired of, and received assurance from, city officials who have responsibility for
financial and accounting matters, that no financial statements as of any date or for any period

subsequent to June 30, 19X5, are available.

We have inquired of those officials regarding whether (a) at November 25, 19X5, there was any
increase in long-term debt or any decrease in net current assets of Example City, Any State Utility

System as compared with amounts shown on the June 30, 19X5, balance sheet, included in the
Official Statement, or (b) for the period from July 1, 19X5, to November 25, 19X5, there were any
decreases, as compared with the corresponding period in the preceding year, in total operating

revenues, income from operations or net income. Those officials stated that (1) at November 25,
19X5, there was no increase in long-term debt and no decrease in net current assets of the
Example City, Any State Utility System as compared with amounts shown in the June 30, 19X5,

balance sheet; and (2) there were no decreases for the period from July 1, 19X5, to November 25,
19X5, as compared with the corresponding period in the preceding year, in total operating

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