Anvil Tax works with Local Portland
CPA to help clients who needs Audits, Reviews, & Compilations as the needs
arises.
Stockholders, creditors, and private
investors often need assurance that the financial statements accurately
represent the true financial position of a company.
All stockholders, creditors, or private investors
have different levels of risk tolerance, so I provide three levels of assurance
to meet your needs.
Audits Are Not Just for
Public Entities
All public companies are required to
have an annual audit, but some nonpublic entities must undergo an annual audit
as well. These include local governments, not-for-profit agencies and other
organizations receiving government grants.
Moreover, some financial
institutions require audits of nonpublic companies based on the financing
amount and/or the bank's assessment of the company's risk. Also, companies with
absentee ownership (such as those owned by investment firms, or individuals who
no longer run the business) may order audits as checks of their management
teams.
Audit
- Highest Level of Assurance
A Portland CPA audit provides the
highest level of assurance. An audit is a methodical review and objective
examination of the financial statements, including the verification of specific
information as determined by the auditor or as established by general practice.
CPA work includes a review of
internal controls, testing of selected transactions, and communication with
third parties. Based on my findings, Portland CPA will issue a report on
whether the financial statements are fairly stated and free of material
misstatements.
An Audit allows you to...
- Satisfy stakeholders such as employees, customers,
suppliers and pressure groups, as well as the investing community, as to
the credibility of published information.
- Facilitate the payment of corporate tax, goods and
services tax, and other taxes on-time and accurately, thereby avoiding
interest, penalties, and investigations.
- Comply with banking covenants.
- Help deter and detect material fraud and error.
- Facilitate the purchase and sale of businesses.
Here's what you get...
Portland CPA, you get the highest
level of assurance because we go outside your company to obtain more
information. Typically, written communication with:
- Your customers, to check outstanding receivable
balances,
- Your banks, to confirm cash or debt balances and terms,
- Your vendors, to verify outstanding payable balances, and
- Your attorneys, for information on pending or
threatened legal action.
A Portland CPA will perform physical
inspections by observing your inventory counting methods and performing test
counts. Document and test each operating cycle, including sales and cash
receipts, expenses and cash disbursements, and payroll. Most audit papers
include a detailed work program to document the examinations and testing
performed, as well as the client's supporting work papers.
Review
- Limited Assurance
Less extensive than an audit, but
more involved than a compilation, a review engagement consists primarily of
analytical procedure and will apply to the financial statements, and various
inquiries and make of your company's management team. If the financial
statements or supporting information appear inconsistent or otherwise
questionable, will may need to perform additional procedures.
Why might a business request a
review engagement? It can be a good middle ground, providing the advantages of
a CPA's technical expertise without the work and expense of an audit.
Compilation
- Lowest Level of Assurance
In compiling financial statements
for a client, Portland CPA will present information that is the
"representation of management" and expresses no opinion or assurance
on the statements. Compilations don't require inquiries of management or
analytical procedures.
Banks often require compilations
from an independent CPA as part of their lending covenants.
Which Report Should You Use?
Each type of financial statement
report may suit specific circumstances, depending on requirements from your
client's bank or other parties, as well as meet budgetary needs.
Understanding each report's unique
strengths and weaknesses can help you choose the most appropriate one. Please
call if you have questions about which type of report is right for you.
Understanding each report's unique
strengths and weaknesses can help you choose the most appropriate one. Please
call if you have questions about which type of report is right for you.
