An audit provides the highest level of assurance for stockholders, creditors and private investors. When ThayerONeal conducts an audit, we methodically review and objectively examine financial statements, including verifying specific information as determined by the auditor or as established by general practice.
We’ll review internal controls, test selected transactions and communicate with third parties and, based upon our findings, we’ll issue a report on whether the financial statements are fairly stated and free of material misstatements.
What an Audit Does
- Satisfies stakeholders such as employees, customers, suppliers and pressure groups, as well as the investing community, as to the credibility of published information.
- Facilitates the payment of corporate tax, goods and services tax, and other taxes on-time and accurately, thereby avoiding interest, penalties, and investigations.
- Complies with banking covenants.
- Helps deter and detect material fraud and error.
- Facilitates the purchase and sale of businesses.
What a ThayerONeal Audit Delivers
With ThayerONeal, you get the highest level of assurance because we go outside your company to obtain more information. Typically, we’ll communicate in writing with:
- Your Customers, to check outstanding receivable balances,
- Your Banks, to confirm cash or debt balances and terms,
- Your Vendors, to verify outstanding payable balances, and
- Your Attorneys, for information on pending or threatened legal action.
We also perform physical inspections by observing your inventory counting methods and by performing test counts. Then, we document and test each operating cycle, including:
- Sales and cash receipts
- Expenses and cash disbursements,
- and Payroll
Our audit papers include a detailed work program to document the examinations and tests performed, as well as the client’s supporting work papers.
Financial Statement Services
Prospective Financial Statements
Audits Are Not Just for Public Entities
All public companies are required to have an annual audit, but some nonpublic entities must undergo an annual audit as well. These entities include:
- Local Governments
- Not-for-Profit Agencies and
- Other organizations receiving governmental grants
Moreover, some financial institutions require audits of nonpublic companies based on the financing amount and/or the bank’s assessment of the company’s risk. Also, companies with absentee ownership (such as those owned by investment firms, or individuals who no longer run the business) may order audits as checks of their management teams.
Reviews Provide Limited Assurance
A review is less extensive than an audit, but more involved than a compilation. A review consists primarily of analytical procedures applied to financial statements and various inquiries to your company’s management team. If the financial statements or supporting information appear inconsistent or otherwise questionable, we may need to perform additional procedures.
A review doesn’t require us to study and evaluate your company’s internal controls, verify data with third parties, or physically inspect assets. Rather, a review report expresses limited assurance in the form of the statement: “We are not aware of any material modifications” for the financial statements to be in conformity with the Generally Accepted Accounting Principles (GAAP). Reviewed financial statements must include all required footnotes and other disclosures.
A review engagement can be a good middle ground that provides the advantages of a CPA’s technical expertise without the work and expense of an audit.
Compilation Provide the Lowest Level of Assurance
Banks often require compilations from an independent CPA as part of their lending covenants. When ThayerONeal compiles financial statements for a client, we present information that is the “representation of management” and expresses no opinion or assurance on the statements. Compilations don’t require inquiries of management or analytical procedures. Instead, we rely on our knowledge of accounting principles and a general understanding of your business.
Which Report Is Right for Your Company?
Other Auditing Services
Attestation services are structured to issue an examination, review, or agreed-upon procedures report on a subject matter, or an assertion about subject matter, that is the responsibility of another party. The subject matter may be as of a point in time or for a period of time, and may take many forms, including historical or prospective performance or condition, physical characteristics, historical events, analyses, systems and processes and behavior.
Our publicly traded clients require an audit of their internal control if their public float exceeds $75 Million. We also perform SSAE 16 Engagements to audit reporting controls at service organizations for those entities that use an ASP or Saas software delivery model. So you if are the cloud we can audit your cloud and provide comfort to your potential clients.
We love helping our clients plan for the future. We create business plans to provide potential investors and bankers a clear, concise outline of your new venture and the potential financial impact of their planned investment in your business. These prospective statements usually include a full set of forecasted or projected financial statements monthly for the first year and annually for the next five. Once the model is created it becomes a fantastic tool for budgeting and monitoring your business using variance analyses going forward.
This is where we can get creative to help you solve a problem. A typical scenario: you banker tells you he is no longer comfortable with your inventory levels and wants you to have an audit of your financial statements. You can afford the cost of a full financial statement audit so we work with you and the bank to create an agreed upon audit of inventory cost, existence and obsolescence to satisfy his concern at the same time keeping your costs under control.
Do you have fraud prevention and detection system in place? You could be losing money as never know until it’s too late. According to ACFE 2014 Reports to the nation approximately 77% of the frauds in their study were committed by individuals working in one of seven departments: accounting, operations, sales, executive/upper management, customer service, purchasing and finance.
It’s harder and more costly to try to recover stolen funds than it is to set-up a system of prevention. A simple fraud risk assessment, performed by our Certified Fraud Examiners, can identify weaknesses in your system and help you establish a better control system to prevent fraud from happening.
Call ThayerONeal to talk with our fraud specialists to discuss what solution is right for your organization.