Audits and Assurance Services
Audit and assurance provide the opportunity for a second set of eyes (usually those of a certified accountant) to take a look at your business accounts to determine the accuracy of the records and identify any inconsistencies.
In the US, most business entities are required, by the law or good practice, to carry out both audit and assurance (especially audits). However, the exact requirements vary. Here’s what you need to know;
Audit Requirements and Benefits
What’s an audit?
In business, an audit is a process of evaluating the accounting entries present in the company’s financial statement. Audits are concerned with just one thing – data accuracy.
Who needs audits?
Most businesses in the US require audits. However, the requirements vary depending on whether it’s a public or private company.
- Public businesses: A business is treated as public if its ownership and debt securities (bonds and stock shares) are traded in the public markets. If you own such a business, you’re legally required to have annual audits performed by an independent CPA firm (according to the federal securities laws of 1933 and 1934).
- Private Businesses: A business is considered private if it’s fully owned by the company’s founders, management, or a group of private investors. The federal law doesn’t require audits for private businesses. But, banks and lenders typically insist on audited financial statements.
Benefits of auditing
- More transparent financial reports for greater investor confidence
- Improved internal controls for better fraud prevention
- The latest audit technologies enhance risk identification
- Provides a platform for tax risk management and future expansion
Assurance Requirements and Benefits
What’s business assurance?
Similar to auditing, business assurance is the process of analyzing and verifying a business’ accounting records to determine whether the records are accurate. The main difference, however, is that the assurance process actively looks for mistakes whereas audits are all about the accuracy of the accounting records.
Who needs business assurance?
Businesses in the US aren’t legally obligated to perform assurance checks. But, your business would benefit from one if;
- You fear there might have been fraud: The business assurance process involves scrutinizing accounting documents to uncover any fraudulent activities.
- There’s a fear of misrepresentation: A misrepresentation is a false statement of truth that affects one of the business party’s decisions related to a contract.
Benefits of business assurance checks
- Gives more credibility to business reporting processes
- Advice and recommendations are given during the process
- Assists management in identifying and managing risks
- Gives more confidence in internal controls
- Can prove crucial in obtaining finance
Our Audit and Assurance Services
A widely experienced Clearwater CPA, Kristina Helferty offers independent professional business audit and assurance services. The services include;
- Agreed-upon procedures
- Financial audit statements
- Financial statement reviews and compilations
- Internal controls
- HUD audits
- Business consulting
The audit and assurance services are handled by a well-trained audit team, with the recognition that our most important product, in the end, is prompt and effective service. The quality of the team has allowed us to help multiple businesses throughout Florida take more control of their accounting processes, leading to improved outcomes.
How to Get Started
You can learn more about our audit and assurance services by visiting our offices along 140th Avenue N, Suite 120, Clearwater, FL. Alternatively, fill our contact form or give us a call at (727) 310-2000.