Audited Financial Statements
Most often, an audit is performed because outside third parties (such as banks, creditors and outside investors) require an auditor’s opinion on financial statements. The objective of an audit is to express an opinion about whether the financial statements are fairly presented, in all material respects, in conformity with generally accepted accounting principles (GAAP) or some other financial reporting framework.
An audit is conducted in accordance with Generally Accepted Auditing Standards (GAAS) and includes tests of accounting records and other procedures considered necessary to express such an opinion. In accordance with these standards, Schultz, Wood & Rapp plans and performs the audit to obtain reasonable, but not absolute, assurance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. This evidence is obtained through inquiry, physical inspection, observation, third party confirmation, examination, analytical procedures and other steps. An audit also includes assessing the accounting principles used and significant estimates made by management and evaluating the overall financial statement presentation.
Our audit includes obtaining an understanding of the entity and its environment, including internal control. This is used to assess the risk of misstatement of the financial statements and to design the nature, timing and extent of audit procedures. An audit is not designed to provide assurance on internal control or to identify deficiencies in internal control. However, our efforts during the audit process and related services often help us to identify and address issues related to:
Business processes and inefficiencies
Areas for cash flow improvement
Company and industry trends
General business advice and concerns
The primary objective of every audit process is to develop an opinion on the fair presentation of financial statements and operational results of clients. Our audit team uses a risk-based audit approach to comply with our audit standards and objectives. We perform a rigorous assessment of risk and, as such, develop an overall audit strategy. Throughout the process, the team will have in-depth conversations to gain an understanding of the client and its environment including internal controls.
In accordance with auditing standards, we will report to management and those charged with governance any significant deficiencies and material weaknesses within the design of their systems. As a value added service, we will also provide management with best practice recommendations to enhance an organization’s operations and performance. Several of our accounting specialists are certified fraud examiners, providing clients with additional knowledge on how to minimize risk and vulnerabilities to fraud. Our professionals work within a paperless environment to enhance efficiencies and timeliness of the engagement process.
Audits of financial statements are the highest level of attestation services provided by Schultz, Wood and Rapp, P.C. Audits are often required by banks providing financing or an absentee owner who wants to be assured about the integrity of financial information provided by management. Audits may also be require by the Federal or State governments or other sources of funding for organizations.
An audit includes examining on a test basis the accounts and transactions of a company or organization, including confirmation of account balances with third parties, observation of inventories and analytical procedures performed on accounts balances to determine the validity of the amounts reported on the financial statements.
Schultz, Wood and Rapp performs numerous audits each year between our two offices in Springfield and West Plains. We service small governments, schools, not-for-profit entities and non-public companies.