Audits, Reviews and Compilations
Our bespoke audit, review and compilation services are able to provide the most reliable levels of assurance possible with regard to your financial information.
In order to fully establish whether financial statements are an accurate representation of a company’s inner workings, many private investors, creditors and stockholders require confirmed assurance.
And with many different degrees of risk tolerance being applicable, we’re able to offer three varying levels of assurance guaranteed to meet your specific needs.
On This Page
- Highest assurance level – Audit
- Audits aren’t just for public entities
- Mid-level assurance level – Review
- Lowest assurance level – Compilation
- Agreed-upon procedures
- Frequently asked questions (FAQs) about taxes, company formaition, and residency in the U.S.
- Get advice on taxation, company formation, and residency in the U.S.
Specifically designed to offer the highest level of assurance possible, an audit is defined as a thorough review and examination of given financial statements. This examination will include verifying all information provided as established by typical practice – or by the auditor themselves.
Our specific audit work includes a detailed review of internal company controls, communication with all third parties and exact testing of chosen transactions. A report will then be used based solely on the audit’s findings, giving confirmation as to whether the financial statements are fair, legitimate and free of error or misstatement.
Our audit procedure will allow you to:
- Give all relevant parties the credibility and reputation of having your published information passed through a professional audit process – these include stakeholders like customers, pressure groups, suppliers and employees.
- Fully comply with the requirements of banking covenants.
- Have a complete overview of all taxes including services, goods and corporate tax. This will help avoid all tax-related investigation, penalties and general interest.
- Facilitate both the sale and purchase of companies or businesses
- Successfully detect and avoid error or financial fraud
As part of our audit process, you’ll receive the highest level of assurance because we will venture outside your company (third parties) to gain the most thorough information and knowledge as possible.
Generally, we will experience communication with:
- Your banks to confirm all debt or cash terms & specific balances
- Your customers to establish all outstanding receivable amounts
- Your attorneys to obtain any relevant information on current/pending threatened legal action
- Your vendors to confirm all outstanding payable amounts
In addition to communicating outside your company, we’ll also perform a thorough physical inspection. This will involve investigating your current inventory counting process in addition to test counts.
Each operating cycle will be thoroughly tested and documented to include payroll, sales & cash receipts, cash disbursements and expenses. Our audit documents will include a detailed work program designed to record testing and examinations performed – as well as your supporting work papers.
Contrary to popular belief, non-public entities are required to undergo as audit in addition to all public companies. These may include not-for-profit agencies, local governments and organizations who receive grants from the government.
Furthermore, some particular financial institutions might require professional audits of non-public companies solely based on the bank’s assessment of estimated risk and overall financing amount. Companies owned by individuals who are no longer responsible for running the business, or investment firms, may also be required to undergo audits to check their management teams.
Offering more involvement than a compilation yet being less expensive than an audit, a review primarily involves a range of analytical processes applied to financial statements. Reviews also involve multiple inquiries of your company’s specific management team.
If financial documents or any other items of information demonstrate questionable inconsistencies, addition processes and investigations may be necessary.
Unlike an audit, a review doesn’t require an intense study & evaluation of your company’s internal controls, physical inspection or verification with third parties. Instead, a review report will offer somewhat limited assurance via the statement “we are not aware of any material modifications” for financial statements to be considered compliant with the GAAP (Generally Accepted Accounting Principles). Any financial statements that have been reviewed must include disclosures and all required footnotes.
In contrast to a review or audit, a compilation expresses no assurance/opinion on financial statements – information is simply presented as a “representation of management”.
Compilations don’t require analytical processes or management inquiries. Instead existing knowledge of accounting principles and the inner workings of the company in question will be relied on.
As part of their lending covenants, many banks often require compilations from an independent CPA.
Specifically tailored to meet the exact needs of your organization, an agreed-upon procedure simply offers certain requested reports. These procedures assist clients in successfully evaluating particular operational factors based on specified needs.
Timing, nature and full extent of the agreed-upon procedure(s) requested are likely to considerably vary based on those specified needs.
Which option is best for me?
Each type has been specifically designed to suit individual circumstances, and the option you choose will depend on the requirements of necessary parties – as well as potential budget limitations.
Having a thorough understanding of each option’s strengths and weaknesses is essential to ensure you choose the most appropriate one. If you have any questions or concerns about which type is right for you, give us a call.
Frequently Asked Questions (FAQs) About Taxes, Company Formation, and Residency in the U.S.
Starting a business in the U.S. can be both exhilarating and exasperating. There is much to know and even more to learn, and the pace of the information coming at you can be overwhelming.
That’s where Mount Bonnell Advisors come in.
Would you like to live your very own American Dream? At Mount Bonnell, we can guide you through the labyrinth of regulation and red tape and out into the blue skies of a dream come true – the dream of living and working in America.
Whether it’s technical issues around tax or residency, or strategic ones involving business formation and growth, the experienced team at Mount Bonnell Advisors are here to help.
So make that dream a reality by booking a consultation today with Mount Bonnell Advisors. Let the adventure commence!