Banks, Creditors, Private Investors, Stock Shareholders, and other backers often require professional assurance that the financial statements they use or produce accurately represent the true financial history and status of an organization. The needs of your clients and investors vary, so we provide different analysis and reporting options for to match the level of risk assurance or tolerance that you need.
Accounting Audits – High Level Assurance of Accuracy
An Audit is an in-depth examination of the financial statements. We verify specific information as determined by our auditor and as per generally established by accounting practice.
How Audits Are Used
- Meet Bank and Lender contracts and covenants
- Satisfy owner and public interest groups
- Meet annual reporting requirements for public companies
- Allow investment from public and private shareholders, lenders
- Facilitate grants for Non-Profit organizations from donors
- Meet obligations for payroll tax, corporate tax, sales tax, goods & services tax, and others
- Avoid interest & penalties and investigations
- Business Valuation
- Support the sale or purchase of a business
- Detect and prosecute fraud
What Is Included in An Audit?
We review select communications with outside parties, transactions and internal controls. We may also exercise a physical inspection by viewing, counting, and testing your inventory following general accounting practices. We create a paper trail and document all inspections and tests that we perform. Reporting includes supporting documents such as receipts for transactions, cash, payroll, and material transfers. Our audit papers include a detailed work program to document the examinations and testing performed, as well as the client’s supporting work papers.
You get the highest level of assurance because we go outside your company to obtain more information. Typically, we’ll have written communication with:
- Your customers, to check outstanding receivable balances,
- Your banks, to confirm cash or debt balances and terms,
- Your vendors, to verify outstanding payable balances, and
- Your attorneys, for information on pending or threatened legal action.
Our final report of findings will include our judgement of the accuracy of the financial statements. A complete Audit gives the highest level of assurance to you and your audience.
Financial Review – Limited Risk / Accuracy Assurance
A Financial Review is similar to an Audit, but is less in-depth and does not require us to verify internal controls or audit specific data and documents provided to us. For a Review, we use accounting and analytical procedures to the financial statements and interviews we make of your leadership team. We look for inconsistencies and results that seem questionable. We look for modifications to data that are suspicious and we follow general accounting practices to review data.
A Financial Review gives limited assurance to you and your audience by confirming whether reports conform to general account practices and whether we have detected material modifications.
Financial Data Compilation – Baseline Accounting Accuracy
A Compilation is the process where we work with the data that you and your organization provide to us. A bank may require a Compilation from an independent Certified Public Accountant as part of their lending covenants. When completed, we present information that is the “Representation of Management” and does not express opinions or assurances on the statements. Our team relies on our extensive knowledge of accounting principles and a general understanding of your organization to complete the work. A compilation does not require additional surveys of management or additional analytical procedures.
What Do I Need?
The right answer starts with how your reports will be used by you and others. Call us to find discuss your specific needs today.