Our CPA firm performs a variety of audit services. They include year-end, forensic, internal, and fraud audits. We also perform annual audits for a variety of industries. This time of the year, many businesses, non-profits, and associations look to Business & Financial Solutions with assistance. And we help them with annual and fiscal year-end audits. These services are often necessary in order to comply with our clients’ banks, our funders, such as United Way.
Internal auditing is an independent, objective assurance and consulting activity. And it is designed to add value and improve an organization’s operations. Further, it helps an organization accomplish its objectives. They bring a systematic, disciplined approach to evaluate and improve the effectiveness of risk management. Additionally, it qualifies control and governance processes for a company. Audits are usually performed by accountants, consultants, and certified public accountants. And they improve operations, or compliance with lenders, investors, or funders.
Thousands of dollars are likely to move in and out of your company’s bank account each year. The treasurer or controller usually oversees all of this activity. The entire executive board is responsible for the care of the money. Internal audits ensure that funds are handled properly. You can all ease your minds by facilitating an audit of your business or non-profit organization at the end of the year. An audit is simply a detailed review of your financial records, in this context. And this is preferred rather than the formal legal certification of books that major corporations run.
The primary benefit of an annual audit is the confidence it gives you and your members. It ensures that the company’s financial house is in order. Basically, the audit verifies the numbers, ensures accuracy, and assesses procedures. A comprehensive audit also identifies internal controls. These are controls that should be implemented to improve the integrity of your financial systems. Furthermore, the audit gives closure to the treasurer. It sets a starting point for the new year’s activity.
CPAs often submit a report on financial findings. Other times, professional standards require that a report be issued. But there are three types of reports. These are audit reports, review reports, and compilation reports. The type of report is determined by mutual agreement between the client and our firm. This determination usually depends on many factors. Factors include the needs of the client, the needs of creditors or investors, the size and complexity of the business, and others. Securities laws require all publicly held enterprises to provide annual audited financial statements. Privately held companies often opt for reviewed or compiled statements. Or, credit agreements with lenders may require audited statements, even for private companies.