Services
Financial Statement Audit Services
for DFW Businesses and Organizations
At Parr & Ibarra CPA, financial statement audits are performed by P&I CPA PC in accordance with Generally Accepted Auditing Standards (GAAS). We serve businesses, nonprofits, restaurant groups, construction companies, real estate entities, and AI and technology companies throughout Hurst, Keller, Grapevine, Addison, and the broader Dallas-Fort Worth area.
* Audits are performed by P&I CPA PC
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A Structured Path to Compliance
What a Financial Statement Audit Examines
A financial statement audit is not a single procedure — it is a structured engagement that examines your financial records from multiple angles. Our audit process covers the following:
Balance Sheet
We verify that assets, liabilities, and equity are accurately stated, properly classified, and supported by underlying documentation. Account balances are confirmed with third parties — banks, vendors, and customers — as part of the evidence-gathering process.
Income Statement
We test revenue recognition, evaluate significant expense categories, and assess whether the reported results reflect the actual operating activity of the business or organization during the period under audit.
Cash Flow Statement
We examine how cash moved through the organization during the period — from operations, investments, and financing activities. Lenders and investors closely review cash flow statements because they reflect actual liquidity, not just reported earnings.
Statement of Changes in Equity
We verify all changes to the equity section during the period, including contributions, distributions, retained earnings, and any adjustments. For closely held businesses and nonprofits, this statement is frequently reviewed by stakeholders evaluating financial health.
Notes to the Financial Statements
We review and evaluate the disclosures that accompany the main statements — accounting policies, significant estimates, related-party transactions, contingencies, and other information that is material to understanding the financial position and performance of the organization.
Internal Controls
We assess the design and operating effectiveness of your internal controls over financial reporting, identify weaknesses, and communicate findings to management. This is often one of the most valuable outputs of the audit process for management and ownership.
Independence and What It Means for You
At Parr & Ibarra, we structure every engagement to preserve auditor independence. This sometimes means separating the audit engagement from other advisory services. We discuss independence requirements with every client before an audit engagement begins so expectations are clear and the audit opinion is not at risk.
Who Needs a Financial Statement Audit
Businesses seeking commercial financing — Most commercial lenders and SBA programs require audited financial statements for loans above certain thresholds. An audit gives your lender the independent assurance they need to approve financing.
Organizations receiving investor funding — Private equity investors, institutional investors, and family offices typically require audited financial statements before closing a transaction or investment.
Franchisees and franchisors — Many franchise agreements require franchisees to submit audited financial statements annually. Franchisors use audited statements to assess franchisee financial health and compliance.
Nonprofits with federal funding — Organizations that expend $1,000,000 or more in federal awards in a fiscal year are required to undergo a Single Audit under Uniform Guidance (2 CFR Part 200). We provide Single Audit services for qualifying nonprofits.
Businesses preparing for sale — Buyers and their advisors require audited financials to complete due diligence and close a transaction. Sellers with audited financial statements command more credibility and encounter fewer delays in the process.
Regulated industries and government contractors — Construction bonding, government contracting, healthcare organizations, and other regulated industries frequently mandate audited financials as a condition of licensure or contract.
How Our Audit Process Works
1. Planning and Risk Assessment
We begin by developing a thorough understanding of your business or organization — your industry, your operations, your accounting systems, and your internal controls. This planning shapes the audit approach and determines where we focus our testing.
2. Fieldwork and Evidence Gathering
We test samples of transactions, confirm account balances directly with banks and third parties, evaluate management estimates, and gather the evidence needed to support our conclusions. We communicate with management throughout fieldwork rather than presenting a list of findings only at the end.
3. Evaluation of Internal Controls
We assess your internal control environment and communicate any significant deficiencies or material weaknesses to management in writing. This step frequently produces the most actionable recommendations of the engagement.
4. Audit Report and Opinion
We issue a formal audit report with an independent opinion on whether your financial statements are fairly presented in accordance with the applicable accounting framework. An unmodified (clean) opinion is the standard outcome when financial statements are found to be free from material misstatement.
5. Management Letter and Follow-Up
Following the audit, we provide a management letter with recommendations for improving internal controls and operational efficiency. We remain available to answer questions and address findings throughout the year.
We serve clients throughout Hurst, Keller, Grapevine, Addison, and the broader Dallas-Fort Worth area. Our documented experience includes six financial statement audit engagements for a national restaurant group with 500+ locations, audit readiness and assurance services for AI and technology companies, and Single Audit engagements for Texas nonprofit organizations.
The Parr & Ibarra Difference
Our Approach to Your Financial Audit
How long does a financial statement audit take?
For most small to midsize organizations with organized records, an audit takes four to eight weeks from the start of fieldwork to delivery of the final report. Organizations with multiple entities, complex transactions, or incomplete records at the start of fieldwork will take longer. The most common cause of delays and additional fees is records that are not reconciled and organized before fieldwork begins.
How much does a financial statement audit cost?
Audit fees depend on the size of the organization, the complexity of transactions, the number of entities, and the condition of the records at the start of the engagement. For most DFW businesses and nonprofits, fees range from $8,000 to $25,000. We discuss fee ranges before any engagement begins.
What is a Single Audit and when is it required?
A Single Audit is required for nonprofit organizations and governmental entities that expend $1,000,000 or more in federal awards in a single fiscal year. It examines both the organization’s financial statements and compliance with the requirements of each federal program. Single Audits have specific reporting deadlines and submission requirements to the Federal Audit Clearinghouse.
Can the same CPA firm handle both our bookkeeping and our audit?
Generally not. Auditor independence standards restrict a CPA firm from auditing financial statements it also prepared through bookkeeping or accounting services. When an audit is required, the bookkeeping and audit functions need to be handled by different firms or structured carefully to preserve independence. We discuss this at the start of every audit engagement.
What happens if the audit finds a problem?
If we identify a material misstatement during the audit, we communicate it to management and request a correction before the audit report is issued. If management does not correct a material misstatement, we issue a modified opinion — which is visible to every lender, investor, or stakeholder who reads the report. Most issues are resolved before the report is issued through ongoing communication throughout fieldwork.
Partnering with an experienced, independent CPA firm like Parr & Ibarra ensures you receive a high-quality audit that builds trust and provides valuable insights for your business’s future success.
Contact Us
Ready to Discuss an Audit Engagement?
Parr & Ibarra CPA serves businesses, nonprofits, and organizations throughout Hurst, Keller, Grapevine, Addison, and the broader DFW area. Contact us to discuss your audit requirements and timeline.
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