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Audits and Financial Statements

 

Audits
The objective of an audit of financial statements is the expression of an opinion by the accountant on the presentation of fairness of the financial statements, in all material respects, financial position, results of operations and its cash flows in conformity with generally accepted accounting principles. We currently perform audits for large and small corporations, large and small not-for-profits, contract audits, local government audits and A-133 audits. We also perform a variety of employee benefit plan audits.

Compilations
Presenting in the form of financial statements information that is the representation of management (owners) without undertaking to express any assurance on the statements.

Reviews
Performing inquiry and analytical procedures that provide the accountant with a reasonable basis for expressing limited assurance that there are no material modifications that should be made to the statements in order for them to be in conformity with generally accepted accounting principles or, if applicable, with another comprehensive basis of accounting.

Agreed Upon Procedures
An engagement to apply agreed-upon procedures is one in which an accountant is engaged by a client to issue a report of findings based on specific procedures performed on the specific subject matter of specified elements, accounts, or items of a financial statement. The client engages the accountant to assist users in evaluating specified elements, accounts, or items of a financial statement as a result of a need or needs of the users of the report. Because users require that findings be independently derived, the services of an accountant are obtained to perform procedures and report his or her findings. The users and the accountant agree upon the procedures to be performed by the accountant that the user believes are appropriate. Because users’ needs may vary widely, the nature, timing, and extent of the agreed upon procedures may vary as well; consequently, the users assume responsibility for the sufficiency of the procedures since they best understand their own needs. The accountant does not perform an audit and does not provide an opinion or negative assurance relating to the fair presentation of the specified elements, accounts, or items of a financial statement. Instead, the accountant’s report on agreed-upon procedures would be in the form of procedures and findings.

Financial Forecasts
Prospective financial statements that present, to the best of the responsible party’s knowledge and belief, an entity’s expected financial position, results of operations, and cash flows. A financial forecast is based in the responsible party’s assumption reflecting conditions it expects to exist and the course of action it expects to take. A financial forecast may be expressed in specific monetary amounts as a single point estimate of forecasted results or as a range, where the responsible party selects key assumptions to form a range within which it reasonably expects, to the best of its knowledge and belief, the item or items subject to the assumptions to actually fall. When a forecast contains a range, the range is not selected in a biased or misleading manner (for example, a range in which one end is significantly less expected than the other).

Financial Projections
Prospective financial statements that present, to the best of the responsible party’s knowledge and belief, given one or more hypothetical assumptions, an entity’s expected financial position, results of operations, and cash flows. A financial projection is sometimes prepared to present one or more hypothetical courses of action for evaluation, as in response to a question such as “ What would happen if …?” A financial projection is based on the responsible party’s assumptions reflecting conditions it expects would exist and the course of action it expects would be taken, given one or more hypothetical assumptions. A projection, like a forecast, may contain a range.

Reports on Internal Control
Engagement to examine and report on management’s assertion about policies and procedures and pertain to the effectiveness of the entity’s ability to record, process, summarize and report financial data consistent with the assertions embodied in either annual financial statements or interim financial statements or both.