Our auditors will ask questions in a good-natured way and review documentation without making you feel like you’re under investigation. The only surprise should be how easy and painless it is to work with our team.
Financial statement assurance services add a level of trust to your internal and external business relationships.
- Financial statement review and auditing
- Internal control audits
- 401K audits
- Employee Benefit Plan (EBP) Audits
- Employee Stock Ownership Plan (ESOP) audits
How an Audit Works
Our Auditors begin by forming an opinion as to if financial statements are fairly stated and in accordance with the proper financial reporting framework.
From there, they will do the following to obtain reasonable assurance in support of that opinion:
- Inquire of management
- Gain an understanding of internal controls
- Perform analytical procedures
- Test documentation
- Confirm bank accounts, notes, or receivables with outside parties
- Request legal representation from the business’s attorneys
- Request representation from management
Auditors may also test count inventory and observe fixed assets and petty cash. We can help to draft financial statements and notes in accordance with generally accepted accounting principles. In addition to the audit opinion, the auditor often provides a letter with recommendations for improvements in internal controls.
The Review Process
Reviews provide limited assurance that no modifications need to be made to financial statements for them to conform with the financial reporting framework. Your accountant issues a report affirming this after your review, but does not issue an opinion on the financial statements.
FYI: A review differs significantly from an audit.
- Provide less assurance to the reader of the financial statements (because the CPA does not perform many audit procedures)
- Consist primarily of inquiries of management and analytical procedures applied to financial data and financial statement items
- Do not generally include gaining an understanding of internal control to the extent that the auditor would provide a letter with recommendations for improvement
We also help draft financial statements and notes.
What to Expect of a Compilation
Compilations support management in presenting financial information in the form of financial statements. Unlike in the review process, the CPA does not provide any assurance regarding modifications that should be made to the financial statements so they will conform to the financial reporting framework or even that the statements are accurate. The compilation will not express an opinion on financial statements either.
Because the accountant has to gain a general understanding of the business, they will communicate anything that comes to their attention that is an obvious misstatement or violation of the financial reporting framework.