Audit and Assurance Services for Compliance and Your Peace of Mind
Are you in need of audited financial statements for your business to procure or maintain a loan or bond?
Did you just read your organization’s bylaws and determine that your nonprofit requires an annual audit?
Does your entity have compliance work such as government or private grants or contracts that require reviewed or audited financial statements, or another compliance procedure be performed by a CPA?
Do you suspect fraud or that something is not quite right with your books or your cash flow?
If you said yes to any of the situations above, then you may benefit from our audit and assurance services. We can help you determine exactly what you need without going overboard with what you don’t need.
There are many benefits to engaging us for assurance work. Here are just a few:
- We’ll provide the reports requested by the third party – bank, bonding company, government, grantor, board of directors, or other interested entities or persons.
- We can suggest ideas to improve and strengthen your internal controls.
- We provide objective insight with fresh eyes.
- We can identify areas with potential cost savings to boost profits.
- We can often recommend operational efficiencies that can be implemented and areas of waste that should be eliminated as we review your processes and procedures.
- We can point out where procedures are being followed and where they aren’t.
- We can work with management on inter-department issues to improve communication and streamline workflows.
- We can point out business and management risks to expand the planning horizon or the company’s preparedness.
Types of Audits
When you hear the word “audit,” it can be a bit confusing. There are many different types of audits. For example, most entities have workers compensation “audits,” but these are effectively reconciliations and not audits in the CPA sense of the word.
You might hear the word audit in conjunction with the IRS. That’s a different kind of audit that we can help you with too. See our tax resolution services for help with an IRS audit.
When a CPA firm audits your financial statements, we perform work to review the strength of your internal accounting controls, the integrity of your accounting transactions, and the accuracy of your account balances. We also review the business overall, including current and future contracts and risks to the company that might impact your business continuity. It’s a little more involved than a worker’s comp audit!
When we start an assurance engagement, we determine what your goals are and investigate how the audit reports will be used. That will help us understand what type of engagement we need to perform for you and the third party that’s requesting the audit.
There are many levels of assurance services and engagements:
- Preparation. Technically not an assurance service, CPAs may be engaged to prepare management use only financial statements, which may or may not be in conformity with accounting standards.
- Compilation. In this engagement, the CPA perform basic checks on your financial statement, writes footnotes to explain certain parts of your statements, and puts them together with a cover letter. It basically tells a third party that you have a CPA and that the financial statements are presented in accordance with accounting standards, but it provides the least amount of assurance as to their accuracy.
- Review. In a review, there are a few more checks and tests that a CPA will perform before issuing financial statements. This service provides more assurance than a compilation, but less than an audit.
- Audit. An audit is very comprehensive and will take much more of your time. The CPA team will perform many accounting tests and procedures as well as review your overall business model and strategy. For larger companies, our audit team works with your internal audit team and your management team to collect the information needed. This service delivers the highest level of assurance of these three options. The end result is we put our name on the line and assert that your financial statements are “free from material misstatement” if everything is in order.
- Agreed-upon procedures. An engagement with agreed-upon procedures is a very specific engagement where one aspect of the business is reviewed in accordance with a specific goal or compliance need. For example, if you want a CPA to review your PPP Loan Forgiveness application before you turn it in, it would be an agreed-upon procedure engagement.
If the assurance work is required by a bank, the size of the loan may determine the level of assurance that the bank wants. For larger loans, as an example, they will want an audit or at least a review. For smaller loans, a compilation or review might suffice.
Don’t worry! You don’t have to know which option you need before coming to us for assistance. Many people think they need an audit, when a review or compilation will work just fine. We can help you figure out what’s best for your situation.
If you need any type of assurance services performed, please reach out to us to find out more. If you have an RFP, feel free to submit it below.