Financial Statement Audits

As Denver businesses grow and financial needs become more complicated there is often a need to undergo an annual financial statement audit. Typically, they are required to comply with debt or loan covenants, and supplier agreements, satisfy regulatory requirements, or meet stakeholder needs. The primary purpose of an audit is to provide an independent opinion on whether an organization’s financial statements are presented fairly, in all material respects, in accordance with applicable financial reporting frameworks. The use of different accounting principles combined with management assumptions needs to be validated by an independent auditor to ensure proper presentation and compliance with Generally Accepted Auditing Standards (GAAS).

Financial Statement Audit Steps

• Risk Assessment & Planning – During this phase, our team becomes familiar with the business and operating environment to identify the areas that have the greatest risk of material misstatements.
• Internal Controls Evaluation -Our team will gain an understanding of internal control in order to plan the audit. This includes understanding how assets are safeguarded, duties are segregated, and how authorization rules are used. This information is essential to the identification of the most effective audit procedures.
• Audit Fieldwork – This is the time when our team is actively involved in testing processes and their results and is focused on collecting needed audit evidence. Typically examined areas include accounts receivable, accounts payable, fixed assets, debt, revenue, expenses, and inventory.
• Audit Report – Our team and your organization’s management and accounting personnel will review drafts of the financial statements, the related disclosures, and the auditors’ report. We will discuss audit findings or recommendations in detail with your personnel and your audit committee or board of directors, as appropriate.

Financial Statement Audit Experience

Whipplewood CPAs have years of experience conducting financial statement audits for companies in Denver and across Colorado. Our team members have experience working with organizations of all sizes to deliver a deadline-driven and cost-effective audit solution. The unique blend of technical expertise and practical experience allows us to deliver insights to management. Whether this is a first-time audit, or you have been undergoing one for years, Whipplewood CPAs stand ready to assist.