Audit Services
- Risk Assessment and Walkthroughs: By performing a thorough risk assessment and walkthrough of key process, we can effectively identify any gaps in controls, unmitigated risks, and/or improvement opportunities.
- Internal Control Review: Assessing your internal control systems to ensure they are effective and reliable.
- Transaction Testing: Performing detailed tests on selected transactions to verify accuracy and completeness.
- Third-Party Communication: Engaging with your customers, banks, vendors, and attorneys to confirm balances and address any potential issues.
- Physical Inspections: Observing inventory counting methods and performing test counts to ensure the accuracy of your reported assets.
- Detailed Documentation: Creating a comprehensive audit work program that documents all examinations, tests, and supporting work papers.
Benefits of an Audit:
- Enhance Credibility: Provide assurance to stakeholders, including employees, customers, suppliers, and investors, regarding the reliability of your financial statements.
- Ensure Tax Compliance: Inspect that payments of corporate taxes, GST, and other obligations, was accurate and performed in a timely manner, reducing the risk of penalties and investigations.
- Meet Banking Covenants: Comply with financial covenants required by banks and other lenders.
- Detect and Deter Fraud: Identify potential areas of fraud and errors through rigorous testing and review.
Review – Limited Assurance
A review offers a middle ground between a full audit and a compilation. It involves analytical procedures and inquiries of your management team, providing limited assurance that no material modifications are needed for the financial statements to conform with Generally Accepted Accounting Principles (GAAP). While a review does not include internal control evaluation or third-party verification, it offers a cost-effective solution for businesses seeking professional oversight without the extensive scope of an audit.
Compilation – Minimal Assurance
In a compilation, we present financial information based on management’s representations without expressing an opinion or providing assurance. This level of service is often utilized for basic financial reporting needs and can be a requirement for certain bank covenants or funding arrangements.
Agreed Upon Procedures
An agreed-upon procedures engagement is an attestation engagement where a CPA issues a report of findings based on specific procedures performed on the subject matter. The subject matter can be financial or nonfinancial
Audits for Non-Public Entities
Beyond public companies, various non-public entities such as local governments, not-for-profits, and organizations receiving government grants may also require annual audits. Additionally, some financial institutions mandate audits for non-public companies based on risk assessment and financing conditions. Companies with absentee ownership may also opt for audits to ensure effective management oversight.
Choosing the Right Report:
Selecting the appropriate type of financial statement report depends on your specific needs, requirements from financial institutions, and/or budgetary considerations. Whether you need the comprehensive assurance of an audit, the focused insights of a review, or the basic presentation of a compilation, Beck and Ibarra is here to provide expert guidance and support.
