FAQ about the Financial Audits
Our Financial Audit FAQ offers clear answers to common questions, helping you understand how the audit process works and how we support you every step of the way to ensure compliance and peace of mind.
What types of audit services do you provide?
We offer a comprehensive range of audit services tailored to meet the unique needs of businesses, nonprofit organizations, and government entities. Our audit solutions are designed to deliver clarity, ensure compliance, and build trust with stakeholders by providing independent, objective evaluations of financial information.
1. Financial Statement Audits
Our core service includes independent financial statement audits in accordance with Generally Accepted Auditing Standards (GAAS). These audits provide the highest level of assurance and are often required by banks, investors, grantors, or regulatory agencies. We help ensure the accuracy and integrity of your financial reporting.
2. Nonprofit and Governmental Audits
We specialize in audits for 501(c)(3) nonprofits, foundations, and government entities, including those subject to Single Audit (Uniform Guidance) requirements. Our team understands the unique compliance and reporting challenges facing mission-driven organizations, ensuring transparency and accountability to funders and the public.
3. Internal Control and Operational Audits
Beyond compliance, we help businesses strengthen internal controls, mitigate fraud risk, and improve operational efficiency. Our internal audits are custom-designed to address areas such as procurement, payroll, IT systems, and financial reporting processes.
4. Agreed-Upon Procedures (AUP) Engagements
These are targeted audit procedures tailored to specific needs—such as validating revenue for licensing agreements, verifying grant spending, or confirming compliance with loan covenants. AUPs are highly flexible and provide assurance over key concerns without a full audit.
5. Review and Compilation Services
For organizations that don’t require a full audit, we also provide reviewed and compiled financial statements. These lower-level assurance services can help satisfy stakeholders’ needs while reducing cost and complexity.
6. Specialized Industry Audits
We provide audit services for a range of industries, including construction contractors, healthcare providers, real estate firms, manufacturing companies, and professional service organizations. Our industry-specific knowledge ensures a more relevant and insightful audit process.
Whether you’re seeking compliance with regulatory requirements, improving financial credibility, or evaluating internal controls, our audit services are designed to support your goals and give stakeholders confidence in your financial information. Contact us to schedule a consultation or learn more about which audit solution best fits your needs.
What is the difference between an audit, a review, and a compilation?
The key difference between an audit, a review, and a compilation lies in the level of assurance provided and the depth of the CPA’s work. Each serves a different purpose based on your organization’s needs, stakeholder requirements, and budget.
Audit – Highest Level of Assurance
An audit is the most in-depth and comprehensive type of financial statement engagement. It provides the highest level of assurance that your financial statements are free from material misstatement, whether due to error or fraud. During an audit, a CPA:
Examines financial records, transactions, and internal controls
Confirms account balances with third parties (such as banks or vendors)
Assesses accounting estimates and evaluates risk
Issues an independent auditor’s opinion on whether the financials are presented fairly in accordance with generally accepted accounting principles (GAAP)
Common reasons to get an audit:
Required by lenders, investors, or grantors
Compliance with government or nonprofit funding guidelines
Mergers, acquisitions, or regulatory filings
Review – Limited Assurance
A review provides a moderate level of assurance that no material modifications are needed to the financial statements. It is less intensive than an audit and does not include testing of transactions or confirmations. Instead, the CPA:
Applies analytical procedures and makes inquiries of management
Evaluates financial consistency and trends
Provides a report stating that the CPA is not aware of material misstatements
Reviews are a good option for companies that don’t require a full audit but still want external validation of their financials.
Common reasons to get a review:
Satisfy investor or board reporting requirements
Prepare for financing or sale of the business
Meet third-party assurance needs at a lower cost than an audit
Compilation – No Assurance
A compilation is the most basic financial statement service. It involves assembling financial information into GAAP-compliant financial statements without providing any assurance. The CPA:
Takes information provided by management and formats it
Does not verify accuracy, perform inquiries, or apply analytical procedures
Issues a compilation report noting no assurance is given
Compilations are often used for internal reporting or to meet low-level reporting needs without the cost of a review or audit.
Common reasons to get a compilation:
Internal use by management
Basic reporting for stakeholders not requiring assurance
Small businesses seeking a formal presentation of financials
Which One Is Right for You?
Choosing between an audit, review, or compilation depends on your stakeholders’ requirements, the intended use of the financial statements, and your organization’s risk profile. We help clients across industries select the most appropriate level of service—balancing assurance, compliance, and cost.
How do you maintain auditor independence and objectivity?
We strictly follow professional ethics and regulatory standards to ensure independence. We avoid conflicts of interest and do not make management decisions, so our findings remain impartial and reliable.
What does your audit process look like?
Our audit process is designed to be thorough, efficient, and collaborative—delivering reliable financial assurance while minimizing disruption to your day-to-day operations. Whether you’re a business owner, nonprofit director, or CFO, understanding how the audit process works helps set expectations and ensures a smoother engagement.
We follow a structured, proven approach that includes the following phases:
1. Initial Consultation & Engagement Planning
The audit begins with an onboarding meeting where we discuss your organization’s goals, reporting requirements, industry-specific risks, and any prior audit findings. We’ll walk you through the scope of the engagement, clarify timelines, and request preliminary documents (such as prior financial statements, organizational charts, or internal control narratives).
2. Risk Assessment & Audit Planning
We perform a detailed risk assessment to identify areas of your financial statements that may be more susceptible to material misstatement—whether due to complexity, judgment, or potential fraud. Based on this risk profile, we tailor an audit plan that aligns with your organization’s structure and operations.
This phase also includes gaining an understanding of your internal controls and accounting systems. If you’re subject to regulatory requirements (e.g., nonprofit Single Audits or ERISA), we incorporate those into the plan from the beginning.
3. Fieldwork (On-Site or Remote)
During fieldwork, our audit team conducts in-depth testing and analysis. This includes:
Reviewing account balances and supporting documentation
Testing transactions such as revenue, expenses, payroll, and inventory
Confirming balances with third parties (e.g., banks, vendors, customers)
Evaluating estimates such as depreciation, bad debts, or accruals
Analyzing internal controls to ensure proper safeguards are in place
We communicate regularly throughout the process and provide a secure portal for uploading documentation. For most clients, fieldwork can be done entirely remotely, improving flexibility and speed.
4. Audit Report & Financial Statements
Once fieldwork is complete, we compile our findings and issue the audit report. You’ll receive:
Audited financial statements
A formal audit opinion letter
Management letter (if applicable), outlining internal control improvements or best practices
Optional board presentation to help explain results and answer questions
We review the audit results with you in detail, address any final questions, and ensure compliance with GAAP or other required frameworks.
5. Post-Audit Support & Advisory
Our service doesn’t end when the audit report is delivered. We’re available year-round to provide guidance on implementing audit recommendations, improving accounting systems, or preparing for future audits. Many clients also use our team as a long-term strategic resource for financial planning and compliance support.
Why Our Audit Process Stands Out
Industry-specific expertise in nonprofit, construction, real estate, healthcare, and more
Transparent communication and clearly defined timelines
Audit-ready tools and secure digital workflows
Minimal disruption to your staff and operations
Actionable insights, not just a checklist of findings
We believe an audit should deliver more than compliance—it should give you clarity, confidence, and a stronger foundation for future decision-making.
How can I prepare for an Audit?
Proper preparation can make the audit process more efficient, less stressful, and ultimately more valuable to your organization. To prepare for an audit, start by organizing your financial records—this includes your general ledger, bank statements, payroll reports, invoices, and supporting documentation. Ensure your accounting system is up to date and that reconciliations have been completed for all key accounts.
Next, review prior-year audit findings (if any) and address outstanding issues. It’s also helpful to prepare a list of significant changes in your operations, leadership, or internal controls, as these can impact audit planning.
Designate a knowledgeable point of contact on your team to coordinate with the auditors and respond to requests. Finally, review the audit requirements provided by your CPA firm in advance, and ask questions early if anything is unclear. Thoughtful preparation not only reduces disruptions but also demonstrates strong financial oversight and good governance.
What internal controls do you evaluate?
We assess key controls related to:
Financial reporting
Cash handling
Expense approvals
Segregation of duties
IT and cybersecurity (if applicable)
Our goal is to identify control weaknesses and recommend improvements.
How do you assess risk during the audit?
We tailor each audit to your organization’s unique risk profile—considering industry, operations, size, and complexity. This approach helps us focus on areas most likely to contain errors or misstatements.
Do you use technology in your audits?
Yes. We leverage secure audit software, data analytics, and cloud-based collaboration tools to enhance accuracy, reduce manual work, and improve the overall audit experience.
What audit standards guide your work?
Our audits follow the Generally Accepted Auditing Standards (GAAS) established by the AICPA, and if applicable, Uniform Guidance for federal grants or Government Auditing Standards (Yellow Book).
How long does the audit typically take?
Audit timelines vary, but most engagements are completed in 4 to 8 weeks after receiving all necessary documents. We’ll provide a detailed schedule during planning.
How much will the audit cost?
Audit fees depend on the size and complexity of your organization. We offer upfront quotes, and our pricing is transparent—no surprises. Let’s talk so we can provide a custom proposal.
Our Financial Audit Services provide clarity, credibility, and confidence—helping you strengthen internal controls, meet compliance requirements, and build trust with stakeholders.
