Annual or periodic financial statements are often required to satisfy banking, bonding, governmental, regulatory or operating agreement requirements.
Financial statements frequently require analysis to assist you in making critical business decisions. Our staff is trained to perform these services from a business point of view. We will work with you to analyze the numbers and identify issues that affect the profitability or financial stability of your company.
Contact us to discuss how we can be of service in the following areas:
- Non-Profit and Governmental Audits
- Employee Benefit Plan Audits
- Compliance Audits
- Agreed Upon Procedures
- Prospective Financial Statements
- Management Consulting
We will work with you, your banker and bonding company, if applicable, to identify the level of service that will be of value to you and everyone involved.
An audit of an organization's financial statements is designed to obtain reasonable assurance as to whether the financial statements are free from material misstatement. We perform detailed testing and analysis of the organization's financial records to make that determination. The objective of an audit is for us to form an opinion as to whether the financial statements are fairly presented in all material respects. An audit is usually requested by regulatory agencies, outside investors or creditors such as a bank.
A review consists principally of inquiries of company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit. No detail account or transaction testing is performed. The review report indicates that we are not aware of any material changes that need to be made to the financial statements in order for them to be presented in conformity with generally accepted accounting principles.
A compilation of financial statements involves assembling client financial records to present the company's financial statements in accordance with a comprehensive basis of accounting. The financial statements can be full disclosure (i.e., footnotes attached) or omitted disclosure (i.e., no footnotes attached). The accountant performs no account testing or analytical review. The report indicates that we have not audited or reviewed the financial statements and, therefore, do not express an opinion or any other form of assurance on the financial statements.
Non-Profit and Governmental Audits
In addition to a financial statement audit, audits of non-profit and governmental organizations can provide assurance that the organization or entity is in compliance with the governmental or non-profit audit requirements. Each entity usually must comply with the specific rules and regulations set by their funding agency or with statutes. These requirements can be the set by the federal government through OMB circulars, the "Yellow Book" or by the federal or state agencies. Examples of such agency requirements are Housing and Urban Development rental or Community Development Block Grant requirements or state auditor's office requirements for various municipalities such as cities, sanitary and improvement districts, municipal utilities or school districts.
Employee Benefit Plan Audits
Federal law requires employee benefit plans with 100 or more participants to have an audit as part of their obligation to file an annual return/report Form 5500 with the Department of Labor. We will assist clients in meeting that obligation for both single employer sponsored plans and multi-employer sponsored plans. These employee benefit plan audits include pension, health and welfare, and 401(k) plans subject to the Employee Retirement Income Security Act (ERISA) under the regulatory authority of the U.S. Department of Labor, including plans of employers and employees who are subject to the Labor-Management Relations Act.
Compliance audits provide assurance as to an organization's compliance with a set of rules or regulations. Our report provides an opinion as to the organization's compliance with those specific rules and regulations.
Agreed Upon Procedures
As the name implies, agreed upon procedures are engagements where an agreement is made between the accountant and the client as to the procedures the accountant is to perform with respect to the client's financial or non-financial records. The purpose is to determine if certain balance sheet accounts are properly stated on the financial statements, or whether specific procedures, processes or specific items of compliance are being followed. After completion of the engagement, we issue a report indicating the work we performed and our findings.
Prospective Financial Statements
Prospective financial statements attempt to predict what will happen in the future, given a fixed set of assumptions. We typically assist clients in developing the fixed set of assumptions and in preparing the financial statements for a bank or other credit agency.
We will work with you on any business issue you have to find the best solution to your problems and concerns. If we do not have the ability to provide the solution, we will provide you with a list of consultants who have the necessary expertise.
We can help you with developing and documenting your business plan and the related financial projections for internal planning and also for your financial needs as part of a loan application.