Audit
Reporting
Financial Statement Audit
Examination of Financial Statements: Our team carefully examines the financial statements, which include the balance sheet, income statement, cash flow statement, and accompanying footnotes. We assess whether the financial statements are presented in accordance with the applicable accounting framework (such as Generally Accepted Accounting Principles or International Financial Reporting Standards).
Assessment of Accounting Policies and Estimates: Our audit team review the organization's accounting policies and significant accounting estimates to determine if they are reasonable and consistent. The team evaluates the methods used to value assets, record liabilities, recognize revenue, and allocate expenses.
Internal Control Evaluation: Our team assess the organization's internal control systems, which are designed to provide reasonable assurance of the reliability of financial reporting and the safeguarding of assets along with evaluating the effectiveness of internal controls in preventing and detecting material misstatements.
Testing of Transactions and Account Balances: The auditor selects a sample of transactions and account balances to perform detailed testing. They verify the accuracy and completeness of recorded transactions, examine supporting documentation, and reconcile balances to external sources such as bank statements or vendor invoices.
Confirmation with Third Parties: The auditor may request confirmations from third parties, such as banks, customers, and vendors, to independently verify the accuracy and completeness of reported balances and transactions.
Analytical Procedures: The auditor applies analytical procedures to assess the reasonableness of financial information and identify any unusual trends or significant fluctuations that require further investigation.
Audit Evidence Documentation: The auditor maintains detailed documentation of the audit procedures performed, evidence obtained, and conclusions reached. This documentation serves as a record of the audit work and supports the auditor's opinion.
Audit Opinion: Based on the audit procedures and evidence gathered, the auditor expresses an opinion on the fairness of the financial statements. The audit opinion may be unqualified (indicating that the financial statements are presented fairly), qualified (highlighting specific issues or limitations), adverse (stating that the financial statements are materially misstated), or a disclaimer of opinion (when the auditor is unable to express an opinion due to significant limitations).
AUP and Review Reports
Agreed-Upon Procedures (AUP) Engagements:
1. Customized Procedures: In AUP engagements, specific procedures are agreed upon between the auditor and the client based on their needs and requirements. These procedures can vary widely and are tailored to address specific areas of concern or to provide specific information requested by the client.
2. Factual Findings: The auditor performs the agreed-upon procedures and presents the results as factual findings. Unlike an audit opinion, AUP engagements do not express an overall conclusion or opinion on the financial statements as a whole. The findings are reported in a factual and objective manner, allowing the client to draw their own conclusions.
3. Limited Assurance: AUP engagements provide limited assurance as the procedures performed are narrower in scope compared to a financial statement audit. The assurance level is determined by the nature and extent of the agreed-upon procedures and does not encompass an opinion on the financial statements as a whole.
Review Reports:
1. Limited Assurance: Review reports provide a moderate level of assurance, higher than that provided by AUP engagements but lower than a full financial statement audit. The review process involves performing analytical procedures, making inquiries, and obtaining limited corroborative evidence to provide a limited level of assurance that no material modifications are necessary to the financial statements.
2. Analytical Procedures: The auditor performs analytical procedures to assess the reasonableness of financial information and identify any unusual trends or significant fluctuations that require further investigation. However, the level of detail and extent of testing performed are lower compared to a full audit.
3. Review Engagement Procedures: The specific procedures performed in a review engagement may include inquiries with management, analytical procedures, comparison of financial statements with prior periods, and obtaining limited external confirmations. These procedures aim to obtain a reasonable basis for expressing limited assurance on the financial statements.
SOC (Service Organization Control) Audits
SOC audits assess the controls and processes of service organizations that handle sensitive customer data or provide outsourced services. These audits evaluate the effectiveness of controls related to security, availability, processing integrity, confidentiality, and privacy. SOC reports provide assurance to clients and stakeholders regarding the organization's control environment.
