Audit and assurance is a term used in the accounting profession to describe a broad range of review services that can be provided by an independent accountant in relation to financial statements. Among those types of services we offer includes the following:
- Agreed Upon Procedures
- Employee Benefit Plan Audits
- Audit or Review of Reporting Packages
An audit is the highest level of assurance a firm can offer on financial statements. An audit includes risk assessment, evaluation of internal control, and testing of balances and transactions in the financial statements for the purpose of rendering an opinion on the financial statements as a whole. Audits may be required for larger entities due to consolidation requirements, or because of lending or regulatory requirements.
The financial statements that we audit can be prepared in accordance with US GAAP, IFRS, or other accepted basis of accounting.
For smaller or mid-sized entities that are not required to have a full scope audit, a limited review may be more appropriate. Rather than testing actual transactions, a review relies more on inquiry and analytical procedures. For many companies, a review provides an adequate level of assurance at a significant cost savings over a full scope audit.
For many smaller clients that simply need a basic financial statement with an accountant's report to satisfy internal management or regulatory bodies, a compilation may be sufficient and can be done for a nominal cost.
Often our firm is requested to perform audit procedures on just specific accounts or areas of the financial statement but do not want a full-scope audit. We can accomplish this with agreed upon procedures. Often they are used to supplant a review engagement with additional procedures in certain areas that would normally only be performed in a full scope audit. In doing so, substantial cost savings can still be achieved compared to a full scope audit.
In addition to audits of financial statements, we can also perform audits of employee benefit plans, when required, typically called 401K plans. As a member of the employee benefit plan quality center of the AICPA, our firm has the unique expertise and experience to perform such types of audits.
Many of our clients are required to prepare reporting packages for use in the worldwide consolidation of their parent company. Often our firm is requested to assist management in the preparing of those packages, as well as to issue an audit or review report on the package.