Because British Columbia is investing significant resources in the 2010 Olympic and Paralympic Winter Games, and potentially may have to commit additional resources through guarantees and indemnifications, the Office of the Auditor General decided to conduct regular reviews of the reasonableness of the Province's cost estimates to undertake the Games. This second report on the topic is based on information to August 31, 2006. It summarizes the Province's latest estimates of the Games costs and the current budget of the Vancouver Organizing Committee (VANOC) and examines the processes used to develop the current estimates and the assumptions underlying those estimates. It also examines the processes used to identify the risks associated with the planning and staging of the Games, and to develop plans for managing those risks. It includes a response from the Province.