Gotham City is a medium-sized government with a general fund budget of $100 million, multiple enterprise funds, two component units, and federal financial award expenditures that average $15 million a year with one to three major programs in a typical year. Gotham has issued an audit request for proposal (RFP) and received six proposals (summarized below):

Gotham City has a charter requirement that requires it to issue its financial statements within 4 months of year end, which is unusually fast for government. Gotham has also accepted a new federal program that has a reputation for complex compliance requirements.
Assuming all proposing firms have good peer reviews and no negative enforcement actions from any regulatory body, analyze the pros and cons of each proposing firm and select the three top firms to be interviewed by the city council audit committee. Discuss any additional procedures you may employ as part of the selection process.

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Size Firm GovernmentaS Single Audit Experience Firm Experience Proposed Fees A Regional Extensive, but Education school districts related only $100,000$7,000 each after 1st MFAP B National Broad range o Extensive $98,000$20,000 for Single Audit governments, many larger and more complex than Gotham C Regional Very limited $75,000 one D Sma o Numerous sm Limited, as most $85,000$15,000 cities clients do not meet threshold for Single Audit E Large Local Several counties, Extensive $95,000$6,000 each after 1st MFAP a few cities and a school district. Variety of governments $93,000 $7,000 after 1st MFAP F Regional Extensive