Assurance
We offer a comprehensive range of assurance services including Audits (forensic accounting), Reviews, Compilations, and GIPS Compliance services.
Our goal is to support small business owners and entrepreneurs in enhancing their enterprises through expert financial guidance and assistance.
Audits, Reviews and Compilations
Audits, Reviews, and Compilations
Stockholders, creditors, and private investors often require assurance that a company's financial statements accurately represent its true financial position. Your stockholders, creditors, or private investors may have varying levels of risk tolerance, so we offer three levels of assurance to meet your specific needs.
Audit: Highest Level of Assurance
An audit provides the highest level of assurance. It is a methodical review and objective examination of the financial statements, which includes the verification of specific information as determined by the auditor or established by general practice. Our work includes a review of internal controls, testing of selected transactions, and communication with third parties. Based on our findings, we issue a report on whether the financial statements are fairly stated and free of material misstatements.
An audit allows you to:
Satisfy stakeholders such as employees, customers, suppliers, and pressure groups, as well as the investing community, regarding the credibility of published information.
Facilitate the timely and accurate payment of corporate taxes, goods and services taxes, and other taxes, 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.
Here's what you get:
You get the highest level of assurance because we obtain information from external sources. Typically, we will 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.
Your attorneys for information on pending or threatened legal action.
We also perform physical inspections by observing your inventory counting methods and conducting test counts. We document and test each operating cycle, including sales and cash receipts, expenses and cash disbursements, and payroll. Our audit papers include a detailed work program to document the examinations and testing performed, as well as the client's supporting work papers.
Audits Are Not Just for Public Entities
While all public companies are required to have an annual audit, some nonpublic entities must also undergo an annual audit. These include local governments, not-for-profit agencies, and other organizations receiving government grants. Additionally, some financial institutions may require audits of nonpublic companies based on the financing amount and the bank's assessment of the company's risk. Companies with absentee ownership, such as those owned by investment firms or individuals who no longer run the business, may order audits as checks on their management teams.
Review: Limited Assurance
A review engagement falls between an audit and a compilation. It involves analytical procedures and inquiries of the company’s management team. If there are inconsistencies or concerns, additional procedures may be necessary. Unlike an audit, it doesn't assess internal controls, verify data with third parties, or physically inspect assets. The review report offers limited assurance that the financial statements adhere to Generally Accepted Accounting Principles (GAAP) and must include required disclosures. Businesses opt for a review when they want the expertise of a CPA without the effort and cost of a full audit.
Compilation: Lowest Level of Assurance
In compiling financial statements for a client, we present information that is the "representation of management" and express no opinion or assurance on the statements. Compilations do not 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.
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