Our financial statement services comprise all three levels of assurance based on your needs.
Audits offer the highest level of assurance to third parties, and include in-depth examinations and confirmation of account balances, inventories, and selected transactions. Specically, our firm specializes in Nonprofit audits, and Qualified Plan audits.
Nonprofit audits: It’s important to know if an annual financial audit is required of your organization by the federal government or by your state. These standards vary considerably. The federal government requires any organization receiving federal funds of more than $500,000 in a year to undergo a “Single Audit,” which generally covers the year/program in question. State governments typically regulate the independent-audit requirement based on income – whatever the source. Given these variations, it’s best to consult an experienced accountant to determine the specific needs of your organization.
Qualified Plan audits: A quality audit will help protect the assets and the financial integrity of your employee benefit plan and ensure that the necessary funds will be available to pay retirement, health, and other promised benefits to your employees. A quality audit also will help you carry out your legal responsibility to file a complete and accurate annual return/report for your plan each year. One of the most common reasons for deficient accountants' reports is the failure of the auditor to perform tests in areas unique to employee benefit plan audits. The more training and experience that an auditor has with employee benefit plan audits, the more familiar the auditor will be with benefit plan practices and operations, as well as the special auditing standards and rules that apply to such plans.
Reviews provide limited assurance to outside interests and involve inquiries and analytical procedures that confirm financial statement matters and identify any items requiring further analysis.
Compilations are usually requested for internal purposes and are based upon information provided by a company’s management. They do not offer assurance, but may involve some adjustment to accounting records.
Preparation of Financial Statements is a new section that applies when a CPA is engaged to prepare financial statements, but not engaged to perform an audit, review, or compilation. Like the compilation, the preparation of financial statements is a non-assurance service, it requires an engagement letter, can omit notes, and can be used outside of management. Unlike the compilation, however, there is no disclosure requirement regarding the CPA's independence, and the financial statements do not have to be accompanied by a report.