Timely, accurate, and informative financial reporting is the backbone of a company’s finance function. Financial reports provide the critical information to make informed decisions. From public companies with audit requirements to private companies seeking capital, audit and assurance services can help you to meet your compliance requirements. Azran Financial provides a full range of cost effective accounting services.
An audit is a unique opportunity to develop a thorough understanding of about a business and the industry in which it operates. Through this enhanced understanding, Azran Financial provides proactive solutions for maximizing profitability and efficiency. Our professionals can recommend improvements to business processes and internal controls, improve the quality of the information your system generates, develop useful management reports and help organize and interpret the financial information to help you make better decisions.
Beyond the traditional CPA firm, Azran Financial’s Certified Management Accountants (CMA) and Chartered Global Management Accountants (CGMA) are also qualified and experienced in providing detailed internal management reporting.
Each type of financial statement report may suit specific circumstances, depending on requirements from your client’s bank or other parties, as well as meet budgetary needs.
Understanding each report’s unique strengths and weaknesses can help you choose the most appropriate one. Please call if you have questions about which type of report is right for you.
Several options for assurance and attest services exist for businesses. We provide financial reporting on all three levels of assurance and attestation. To more thoroughly understand what you need, click for more in-depth explanations of the different services.
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:
An Audit allows you to…
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.
If a full audit is not required, we can provide review services on financial statements. Less extensive than an audit, but more involved than a compilation, a review engagement consists primarily of analytical procedures we apply to the financial statements, and various inquiries we make of your company’s management team. In a review, inquiries and analytical procedures are conducted, providing limited assurance that no material modifications should be made to the financial statements in order for the statements to be in conformity with GAAP or other applicable financial reporting framework.
If you need a closer examination of your books, but an audit is not required, and a compilation is not thorough enough, you should consider a review. A review is a mid-level assessment performed by an independent accountant (*sometimes not your current CPA). Responsibilities and the results of the engagement are communicated in our review report. Although review procedures are much less in-depth than audit procedures, we use our knowledge of your industry to identify and share our recommendations to improve the results of your operations.
In a review, the CPA designs and performs analytical procedures, inquiries, and other procedures, as appropriate, based on the accountant’s understanding of the industry, his or her knowledge of the client, and his or her awareness of the risk that he or she may unknowingly fail to modify the accountant’s review report on financial statements that are materially misstated. A review does not contemplate obtaining an understanding of the entity’s internal control; assessing fraud risk; testing accounting records; or other procedures ordinarily performed in an audit.
The CPA issues a report stating the review was performed in accordance with Statements on Standards for Accounting and Review Services; that management is responsible for the preparation and fair presentation of the financial statements in accordance with the applicable financial reporting framework and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements; that a review includes primarily applying analytical procedures to management’s financial data and making inquiries of management; that a review is substantially less in scope than an audit and that the CPA is not aware of any material modifications that should be made to the financial statements in order for them to be in conformity with the applicable financial reporting framework.
Why might a business request a review engagement? It can be a good middle ground, providing the advantages of a CPA’s technical expertise without the work and expense of an audit.
Compilation services are offered to assist your accounting department in the preparation of your financial statements in accordance with professional standards. A compilation involves obtaining information from management in an effort to prepare financial statements without expressing any assurance that the statements are fairly presented or about the underlying information in the statements.
The objective of a compilation of financial statements is to assist management in presenting financial information in the form of financial statements without providing any assurance that there are no material modifications that should be made to the financial statements.
We improve the quality of the compiled financial information by helping clients present it in accordance with GAAP, an other comprehensive basis of accounting (OCBOA), or other applicable reporting framework. Although our report does not explicitly provide assurance, the fact we assisted helps provide assurance to decision makers.
The compilation, by formatting information in a standard format, allows you to evaluate your company’s performance and allows us to highlight and recommend ways to enhance your organization’s operations.
In compiling financial statements for a client, we present information that is the “representation of management” and expresses no opinion or assurance on the statements. Compilations don’t require inquiries of management or analytical procedures. Instead, we rely on our knowledge of accounting principles and a general understanding of your business.
Banks often require compilations from an independent CPA as part of their lending covenants.
At times you may need a trained outside professional to evaluate your company’s operations to determine if the appropriate controls are in place to ensure proper handling of resources and to protect yourself from employee theft.
We assess your internal control systems to determine the efficiency and effectiveness of your operating procedures. Then we make recommendations that help your company become stronger and more profitable by correcting any inefficient or ineffective operating procedures we find.
What we do for you…
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Phone: (310) 691-5040 Fax: (800) 272-5016
16130 Ventura Boulevard Suite 380 Encino, CA 91436
Phone: (818) 691-1234 Fax: (800) 272-5016