Audit Services

• Audit
• Review
• Compilations
• 401K Audit
• 403B Audit
  
• HUD Audit

Audits, Reviews and Compilations

Stockholders, creditors, and private investors often need assurance that the financial statements accurately represent the true financial position of a company. Your stockholders, creditors, or private investors have different levels of risk tolerance, so we provide three levels of assurance to meet your needs.

Which Report Should You Use?

Each type of financial statement report may suit specific circumstances, depending on requirements from your  bank or other parties.

We understand each report's unique strengths and weaknesses and will help you choose the most appropriate one for your company

Audit - Highest Level of Assurance

An audit provides the highest level of assurance. An audit is a methodical review and objective examination of the financial statements, including the verification of specific accounting documents and information as determined by the auditor or as established by AICPA professional standards.

Our work includes a review of internal controls, testing of selected transactions, and communication with third parties. Based on our findings and audit documentation, we issue a report on whether the financial statements are fairly stated and free of material misstatements.

An Audit allows you to...

Satisfy stakeholders such as employees, customers, suppliers and pressure groups, as well as the investing community, as to the credibility of published information,  Comply with banking covenants,and Facilitate the purchase and sale of businesses

Following is a summary of the benefits you will recieve from having us perform an audit...

You get the highest level of assurance because we go outside your company to obtain and verify information. Typically, we'll have written communication with:

· Your customers, to check outstanding receivable balances,

· Your banks, to confirm cash or debt balances and terms,

· Your vendors, to verify outstanding payable balances, and

· Your attorneys, for information on pending or threatened legal action.

We also perform physical inspections by observing your inventory counting methods and perform test counts. We document and test each operating cycle, including sales and cash receipts, expenses and cash disbursements, and payroll. Our audit papers include a detailed work program to document the examinations and testing performed, as well as the client's supporting work papers.

Audits Are Not Just for Publicly Traded Companies

All public companies are required to have an annual audit, but some nonpublic entities must undergo an annual audit as well. These include local governments, not-for-profit agencies and other organizations receiving government grants.

Moreover, some financial institutions require audits of nonpublic companies based on the financing amount and/or the bank's assessment of the company's risk. Also, companies with absentee ownership (such as those owned by investment firms, or individuals who no longer run the business) may order audits as checks of their management teams.

Review - Limited Assurance

Less extensive than an audit, but more involved than a compilation, a review engagement consists primarily of analytical procedures we apply to the financial statements, and various inquiries we make of your company's management team. If the financial statements or supporting information appear inconsistent or otherwise questionable, we may need to perform additional procedures.

A review doesn't require us to study and evaluate your company's internal controls or verify data with third parties or physically inspect assets. Rather, a review report expresses limited assurance in the form of the statement: "We are not aware of any material modifications" for the financial statements to be in conformity with accounting principles generally accepted in the United States of America. Reviewed financial statements must include all required footnotes and other disclosures in accordance with statements on standards for accounting and review services (SSARS).

Why might a business request a review engagement? It can be a good middle ground, providing the advantages of a CPA's technical expertise without the work and expense of an audit.

Compilation - Lowest Level of Assurance

In compiling financial statements for a client, we present information that is the "representation of management" and expresses no opinion or assurance on the statements. Compilations don't require inquiries of management or analytical procedures. Instead, we rely on our knowledge of accounting principles and a general understanding of your business.

Banks often require compilations from an independent CPA as part of their lending covenants.

401K Audit

All companies with 100 or more eligible participants in an employee benefits plan are federally mandated to have an audit preformed as part of their form 5500 series return.

We have been performing 401K plan audits since 2003. Our average audit cost is significantly lower than most top CPA firms. As members of the AICPA's Employee Benefit Audit Quality Center we are kept abreast of current audit requirements. Part of that membership requires our Peer Review every three years contain at least one benefit plan audit be subject to review by an independent CPA firm.

403B Audit

All retirement plans established for employees of public schools and certain tax exempt organizations commonly known as tax-sheltered annuities or 403(b) plans are federally mandated to have an audit performed as part of their form 5500 series tax return.

Our average audit cost is significantly lower than most top CPA firms. As members of the AICPA's Employee Benefit Audit Quality Center we are kept abreast of current audit requirements. Part of that membership requires our Peer Review every three years contain at least one benefit plan audit be subject to review by an independent CPA firm.

HUD Audit

As members of the AHACPA, IAMB, and IMBA we are familiar with all the HUD and FHA requirements for your audit. Whether you are looking to become FHA certified or having your yearly HUD audit and LASS submission submitted, LHW will meet your needs. We have been servicing the mortgage banking industry for over 20 years.

Please click here to see our Peer Review.

Call us today at 815-788-9400 ext. 0 if you have questions about which type of report is right for you. We offer a FREE initial consultation for business owners.