Eighty-two years of accounting evolution separate the audits of 1928 and 2009. Thus the audit reports for each period reflect the use of different accounting and auditing standards. According to the 1928 report, the included schedules were prepared using standards that “agree[d] with the U.S. Census Bureau and the National Municipal League.” Moreover, the cash basis of accounting (cash receipts and cash disbursements) and single-entry bookkeeping were employed (Newton 1946). The 2009 report was based on GASB 34 standards, which require the use of both the modified accrual and accrual basis of accounting, and a focus on current and economic financial resource measurements (Gauthier 2005). The following comparison of the two reports summarizes their similarities and differences.
In order to indicate that the auditor is unbiased with respect to all portions of the audit, the 2009 report is entitled “Independent Auditor's Report” (Arens et al....