Financial Statement Audits &
Audits of Internal Control Over Financial Reporting

Highest Level of Assurance

An Audit is an examination, on a test basis, in accordance with generally accepted auditing standards, providing reasonable assurance on the financial statements. Audits are generally performed in order to provide assurance to a third-party decision maker (shareholders, lenders, regulators, etc.). The objective of an audit is to express an opinion on the fairness with which they present, in all material respects, financial position, results of operations, and cash flows in conformity with generally accepted accounting principles (GAAP) or another specified financial reporting framework.

Although audit services are generally provided to meet a third party requirement, we understand this service has greater value for you when we identify opportunities for your organization. With our industry knowledge, we look for ways to improve your organization's operations, increase effectiveness, and attain efficiency to increase the bottom line.

An audit includes a review of internal controls, testing of selected transactions, and communication with third parties. A physical inspection may be performed by observing your inventory counting methods in addition to test counts. Tests will be performed to document and examine each operating cycle, including sales and cash receipts; expenses and cash disbursements; and payroll. The audit papers include a detailed work program to document the examinations and testing performed, as well as the client's supporting work papers. Based on the findings, a report is issued on whether the financial statements are fairly stated and free of material misstatements. These audited financial statements provide the user with the auditor’s opinion as to whether or not the financial statements are presented fairly, in all material respects, in conformity with the applicable financial reporting framework.

An audit may be required if:

  • You are publicly traded
  • You are considering going public
  • A lender requires one as a condition of the loan
  • You anticipate purchasing a business or selling your company
  • You receive federal funds and want to preserve integrity
  • There are absentee owners that need assurance of the company operations

An Audit allows you to...

  • Satisfy stakeholders such as employees, customers, suppliers and pressure groups, as well as the investing community, as to the credibility of published information.
  • Facilitate the payment of corporate tax, goods and services tax, and other taxes on-time and accurately, thereby avoiding interest, penalties, and investigations.
  • Comply with banking covenants.
  • Help deter and detect material fraud and error.
  • Facilitate the purchase and sale of businesses.

Audits: Not Just for Public Entities

All public companies are required to have an annual audit, but some nonpublic entities must undergo an annual audit as well. These include local governments, not-for-profit agencies and other organizations receiving government grants. Moreover, many financial institutions require audits of nonpublic companies based on the financing amount and/or the bank's assessment of the company's risk.  Finally, companies with absentee ownership (such as those owned by investment firms, or individuals who no longer run the business) may order audits to check on their management teams.

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