Financial Statement Preparation and Attestation Engagements
Businesses today are seeing more and more requests for financial data from suppliers, lenders, creditors, grantors, bonding companies, state qualifications, among others. We also suggest at the very least having financial statements on a quarterly (or monthly) basis to help see how the business is operating so you can make management decisions and help assist in cash flow planning. These financial statements are required in different formats that increase in the levels of assurance of the financial statements from compilations to reviews and finally to audits.
Our firm covers all aspects of attestation engagements:
- Agreed-Upon Procedures
As mentioned previously in our compilation section, banks may require reviewed financial statements from business with higher debt needs in order to provide them a higher level of assurance in the financial information. Construction industry clients are often required by bonding companies or state qualifications to provide current reviewed financial statements in order to bid on certain jobs. Our firm possesses the knowledge and expertise to provide our construction clients with the most up-to-date accounting knowledge to help them meet their requirements for bonding and qualifications, in turn allowing them to grow their business and continue to take on new jobs. For more information on Review please contact one our CPAs below.
Audits are often required by an outside party. Many businesses look at this as something they must do to move forward to the next step. They pay for it, get it done, and move on. We advise businesses to use our services to assist them in making improvements in their internal control function and not just to get through a requirement. If you are paying for the service, get as much out of the service as you can to help your business grow and move in the right direction. There are many reasons a non-profit may need audited including grantor requirements, Board recommendations, or even to attract new donors by proving they are not the only set of eyes on the funds of the non-profits. This assists in increasing the public perception of a local non-profit. Government regulations also stipulate employee benefit plans with a certain number of eligible participants at the beginning of the tax year (100 unless you elect to wait until it reaches 120) are required to be audited. Our firm focuses specifically on defined contribution retirement plan audits. For profit companies may also need audits based on Board decisions or debt covenants. Our audit services not only help meet requirements from grantors, the Department of Labor, etc., but the audit team will also make additional internal control recommendations, if applicable, to help better your procedures in dealing with your accounting functions. For more information on Audits please contact one our CPAs below.
Agreed-upon procedures allow our clients the most flexibility in having a specific procedure performed. Does management believe there is fraud? If so, they can specify what accounts they believe may be affected and the time frame it could have taken place. This can also be used for many other specific projects requested by a client. Another common agreed-upon procedure is the Annual Title Agent/Agency Review required by the Ohio Department of Insurance. These are for the twelve month period ending on August 31st and are due by January 15th. This is a requirement of all title agents and agencies as long as they do not meet one of the two exceptions: 1) An agent does not handle escrow account funds related to Ohio Transactions 2) An agent averages five Ohio transactions or less per month during the twelve month period ending August thirty-first and the agent’s escrow accounts have been reviewed during that twelve month period by one or more of the title insurance companies by which it had been appointed. For more information on Agreed-Upon Procedures please contact one our CPAs below.