Financial Statement Audits
The objective of an audit of financial statements in accordance with generally accepted auditing standards (GAAS) is to provide a reasonable basis for expressing an opinion regarding the financial statements taken as a whole. An audit requires obtaining an understanding of internal control or assessing control risk and tests of accounting records and of responses to certain other procedures ordinarily performed during an audit.

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 information as determined by the auditor or as established by general practice.

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

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.

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 the Generally Accepted Accounting Principles (GAAP). Reviewed financial statements must include all required footnotes and other disclosures.

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.

Technical competence in SEC filings and IPO’s

Because we’re a small-sized firm comprised of partners with big excellent experience backgrounds, we are able to deliver big-firm quality audits efficiently. Our approach, which includes partner involvement in all engagements, helps small to medium sized companies navigate the complexities of compliance with knowledgeable professionals delivering high-integrity services. Our partners have the background and levels of technical competence to ensure top notch professional quality.

Audits of private companies

Today's business environment has made it clear that an audit is not a commodity, but a critical element of the capital market system. Yet, many large accounting firms cannot give their full attention to their privately held clients. We focus on the middle-market private sector businesses and offer you a full range of assurance services as well as tax and consulting services.

401K Audits

401(k) Audit Requirements
A 401k account is a retirement savings account, which takes its name from subsection 401(k) of the Internal Revenue Code. In this account, employees can choose to defer a portion of their earnings and not pay income tax on the money until it is later withdrawn in retirement. Earnings on contributions are not taxed until the funds are withdrawn. Employers may also choose to, and often do, match contributions that employees make.

The employee invests contributions among investment options selected by the Plan Sponsor (employer).

Typical investment choices are a selection of mutual funds, but sponsors may also allow other investment options such as stocks, bonds, guaranteed insurance contracts or individual brokerage accounts. The employees can generally re-allocate money among these investment choices at any time.

Regulatory changes that went into effect in 2006 now allow Plan Sponsors the option to design plans that accept separately-designated Roth accounts, commonly referred to as Roth 401k’s. Roth contributions are withheld from the employee after taxes; that is, income tax is paid or withheld in the year contributed. Qualified distributions from a designated Roth 401k account, including all earnings, are tax-free.

Note:
all employer matching funds are deposited into the participant accounts on a pretax basis, even if the employee's contributions are all Roth contributions.

Why Do You Need a 401(k) Audit?

All employers sponsoring 401k plans must file tax returns with the IRS. This is done via an informational return filed on Form 5500. The 401k audit requirement is based on whether the plan files this return as a large or small plan - large plans need to be audited whereas small plans do not.

The number of eligible participants as of the 1st day of the Plan year determines if a plan files Schedule H (large plan) or Schedule I (small plan) as a supplemental schedule to the Form 5500.

In the first year of operations, the cutoff for classification is easy – under 100 eligible participants equates to a small plan and plans with 100 participants or more are classified as large plans. After year one, the 80 - 120 Rule comes into play. Any plan filing a Schedule H is required to attach an audited financial statement to the annual Form 5500 filing.

If you have never had a 401(k) audit plan done, then the initial process will likely overwhelm you. Our 401(k) audit professionals will help you to get through your audit in the quickest time possible.

How We Help You With Your 401(k) Audit?

Serving businesses throughout the United States, our team of experienced 401(k) specialists can provide you with cost-effective 401(k) audit services. Our team will typically have your audit completed within a few weeks, as opposed to several months (a typical time frame for many other firms).

• Specialization - We specialize in 401(k) audit plans, and our team possesses the knowledge and expertise to perform your audit properly and efficiently.
• Time Saved - We do not start and stop your audit process, as many other firms might. Once started, we do not stop your audit until it is completed.
• Experienced Personnel - Our professional staff has many years of experience performing 401(k) audits for a variety of business locations throughout the U.S.