Audits

Audit is the highest level of service involving a critical review and selected independent verification of financial information. The goal of an audit is to verify the accuracy and truthful disclosure of the financial statements. Business Matters will spend extensive time studying the organization, operations, management and financial systems of the business. We observe, test and assess the policies, systems and procedures throughout the organization to determine their affects on the financial statements. Typically, we’ll have written communication with your customers (confirm receivable balances), your financial institution (confirm cash or debt balances and terms), your vendors (verify payable balances), and your attorneys (information on pending or threatened legal action).

We also perform physical inspections by observing your inventory counting methods and perform test counts. We then make comparisons with financial and industry standards, previous company data and standard accounting practices, clearing the way to make a final assessment of the financial statements.

Audits require the company and the external CPA to practice full disclosure in data collection and reporting. Thus, an audit provides the highest degree of professional assurance about the accuracy of a company’s financial statements. The audit results in an independent, professional opinion from a CPA attesting to the fairness and accuracy of company’s financial statements and the representations they contain.

Audits are often necessary to comply with the requirements of lending institutions (debt covenants), suppliers and pressure groups, the investing community, regulatory agencies or others who rely heavily on the information contained in your financial statements. An audit provides credibility of the published financial statements.