- Provide visibility and security to an organization’s lenders and stakeholders about an organization’s financial status
- Lay the foundation for access to capital and other resources needed (often required by lenders and investors)
- Reinforce financial discipline and accountability
- Meet regulatory requirements
Who’s most likely to benefit:
Any organization seeking:
- Security and reassurance about the organization’s operations and financials for internal and external stakeholders
- Easier access to capital
- Additional financial credibility
- To meet regulatory requirements for audits or other attest services
- AUDIT: For a financial statement audit, an audit team reviews an organization’s financial statement and the underlying data that supports it to ensure that the information is fairly and materially stated and reflects the organization’s financial status.
Audit process and methodology: Before fieldwork, the team coordinates scheduling and deadlines with the organization’s financial leadership to secure any documents required before the visit, assesses risks which could affect financial performance, explores whether reasonable assumptions were made in creating the financial statement and determines an audit plan.
Once onsite at the client's organization, the audit team reviews and confirms selected financial information within the company (such as bank statement reconciliations, inventory and accounts receivable/payable) for comparison with the financial statement, and examines certain internal financial controls. The team is also required to consider the possibility of fraud.
For governmental and not-for-profit organizations which receive Federal funds, a single audit determines whether funds were used for the purpose they were intended for may be required.
At the conclusion of fieldwork, a final meeting is held onsite with the organization’s financial leadership to resolve any remaining questions or issues. AGH then issues an audit report draft for the organization’s review and comment, then a final audit opinion.
- REVIEW: In a review of financial data, inquiry and analytical procedures are performed, but no confirmation of the data is pursued, and no formal audit opinion is issued. A review report states whether the audit team found any variances from generally accepted accounting practices.
- COMPILATION: A compilation is an abbreviated perusal of financial data compiled and presented by the organization. There is no independent inquiry and confirmation of the data; it is simply formatting information into a financial statement. No audit opinion is issued.