Audit Services: Deliverables:
• Preparation of Financial statements & required footnote disclosures
• We will issue a report upon completion of our audit of your financial statements
• Preparation of IRS Form 990
• Preparation of NYS Form CHAR 500
• We will communicate, to those charged with governance, in a separate letter, significant deficiencies or material weaknesses in internal control identified during our audit.
• We will communicate, to those charged with governance, opportunities for strengthening internal controls and operating efficiency which we became aware of during our audit.
• We will communicate, to those charged with governance, significant issues or findings from the audit, our views towards accounting practices, significant difficulties encountered during the audit, disagreements with management, uncorrected and corrected misstatements, significant findings or issues discussed or subject to correspondence with management.
Audit Services: Summary and Info:
The objective of an audit is the expression of an opinion on financial statements, which is the highest level of assurance a CPA can render. While the opinion is on the financial statements, the audit is of the entire organization. Audit procedures will be applied to account balances, but the auditor will also be examining your organization’s operating environment and internal controls. In doing so, the auditor may identify internal controls and operational deficiencies. At the conclusion, the auditor will issue a written communication regarding internal control deficiencies. Although the audit report accompanying the financial statements is intended to go to parties outside the organization, the communications on internal control matters are intended for the use of governance (i.e. the board) and management. That notwithstanding, the organization may be requested by outside parties to give the audit internal control communication to outside parties (e.g. funders and government agencies).
During a review or preparation engagement, the CPA will interact mainly with an authorized point person (e.g. an executive director, controller or treasurer). As outlined in the audit engagement letter, auditors will need unrestricted access to persons within the organization from whom they determine it necessary to obtain audit evidence. You can expect an auditor to interact with management, governance, key employees and even lower level staff or volunteers. Additionally, the auditor will need to confirm items with parties outside the organization.
In looking at the organization’s system of how transactions are authorized, processed, reviewed and accounted for, the audit could help identify fraud and other problems. This is what makes the audit a crucial tool used by organizations to maintain a culture of honesty and ethical behavior. Having an audit also demonstrates the organization’s integrity to outside parties.
We will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the organization or to acts by management or employees acting on behalf of the organization.
An audit contemplates obtaining an understanding of the entity’s internal controls; assessing fraud risk; testing accounting records by obtaining sufficient appropriate audit evidence through inspection, observation, confirmation, or the examination of source documents; or other procedures ordinarily performed in an audit. Some of the transaction processes observed during an audit are income/cash receipts, expenses/cash disbursements, banking and reconciliations and payroll/compensation processing. Audit procedures also include obtaining an understanding of your organization’s environment, which entails inspection on governance documents, policies, procedure manuals and contracts.
An attest engagement is an engagement that requires independence, such as an audit or review. Nonattest services are services provided to attest clients that are not specifically related to the performance of the attest engagement. In order for us to maintain independence, management has to assume specific responsibilities in regard to the nonattest services provided. Non-attest services include making accounting adjustments and the preparation of the financial statements.
Preparation of the informational tax returns will be in accordance with the Statements on Standards for Tax Services issued by the American Institute of Certified Public Accountants and U.S. Treasury Department Circular 230.