Audits

Audits2017-04-18T07:06:44+00:00

Once your business has grown to the point where you have stockholders, creditors and private investors they usually need assurance the financial statements you report represent the true financial position of the company.

Every investor who has a stake in your company has a different level of risk tolerance. Because of this we provide three levels of assurance to meet your company’s needs.

Audit – Highest Level of Assurance

The highest level of assurance we can provide is an audit. An audit is complete review and objective examination of the financial statements, including verification of specific information as determined by the auditor.

We assure that our work will include a review of all internal controls, testing of selected transactions and a record with any communications with third parties. After which we will issue a report based on the findings. This report will show whether or not your financial statements are clear and free of material misstatements.

What Does an Audit Allow You to Do?

  • Gives you credibility to company and will satisfy your investors as public information the audit gives will show your company in a good light as long as your finances are in order
  • Facilitates the payments of several important taxes such as corporate tax, and goods and services tax on time thereby avoiding interests and penalties
  • Helps you comply with bank covenants

We do assure the highest level of service as we will not only get the information from inside the company but we will go the extra mile and talk to customers, banks, vendors and other attorneys to get the most information available.

We will also perform physical inspections of your business by looking into your inventory as well as testing your counting methods. We will document and test all aspects of the business from payroll to operating cycles. The audit papers you will receive from us will include a detailed work program of all the tests performed as well as the results.

Review – Limited Level of Assurance

A review is a step down from an audit and is less extensive. A review usually consists primarily of analytical procedures we apply to the financial statements, and various questions we ask your company’s financial team. While we do hope that during the review no real inconsistencies arise. However if there are any found we may need to do additional procedures.

Normally a review does not require in depth studies or evaluations of your company’s internal controls. Also interviews with third parties are also not necessary. Usually what is expressed during a Review is a statement saying “We are not aware of any material modifications” for the financial statements to be in conformity with the Generally Accepted Accounting Principles (GAAP). All reviewed financial statements must include all required footnotes and other disclosures.

Compliance – Lowest Level of Assurance

When we compile financial statements for a client we usually present information that is a “representation of management” and express no opinion on the matter or assurance on the statements. Compilations do not require any inquires on management or analytical procedures. We instead rely on your knowledge of account principles and a good knowledge of your business.

Banks are the ones who usually require compilations as part of their lending process.

Each level has its pros and cons and each will give you a certain understanding to your business. By understanding the reports given will help your business to grow in the end.

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