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 purpose of an audit is to assess and prove that management prepared financial statements accurately represented by obtaining evidence through inquiries, observations, and third-party confirmation. 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 reporting errors.
Internal Controls Evaluation
Time will be dedicated to conducting an evaluation for the purpose of comprehending the internal control structure. 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.
This is the time when our team is actively involved in testing various processes and procedures and is focused on collecting needed audit evidence. Typically examined areas include accounts receivable, accounts payable, fixed assets, debt, revenue, expenses, and inventory.
After fieldwork is concluded, our team will review all findings and begin drafting the financial statement which typically includes the income and cash flow statements, balance sheet, changes in equity, and footnote disclosures. Along with this information will be the auditor’s opinion which essentially certifies the financial statement. There are four types of opinions unqualified, qualified, adverse, and disclaimer. The unqualified opinion is the best because it confirms the financial information is fairly presented.
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.
If you are required to undergo a financial statement and are searching for a qualified audit firm, Whipplewood CPAs can help. For additional information call 303-989-7600 or click here to contact us. We look forward to speaking with you soon.