An audit is a formal examination of an organization’s financial statements. In an audit, the CPA obtains an understanding of the client’s organization and its internal control, along with operating and industry characteristics. Based on this knowledge and the CPA’s analysis of financial statement risk, he or she designs and performs procedures, including contact with sources outside of the client. By accumulating evidence, the CPA tries to reduce the risk that the financial statements will be materially misstated. Each audit will be different.
Only licensed Certified Public Accounting firms/individuals are authorized to perform an audit. The CPA must be independent of the client and the financial statements must contain all required disclosures.
An audit is often performed at the request of outside parties, i.e. bankers, bonding companies, governmental entities, or the organization’s board of directors. Additionally, members of the Contryman Associates audit team can help you understand how the factors reflected in the financial statements contribute to your organization’s financial results. This process allows for comparison of financial information from year to year to detect trends and for strategic planning purposes. Any significant variances will be discussed with you. Our audit services team members take a proactive role in consulting with you on issues relevant to your organization. This allows you to supplement your knowledge about your organization and industry with our knowledge in developing action plans to help meet your financial goals.
- Determine that Contryman Associates, P.C., is independent of the organization being audited
- Meet with management and other personnel to gain an understanding of your organization, the operating and industry characteristics, and your system of internal controls
- Research your industry
- Members of the Contryman Accounting and Auditing Committee develop a detailed plan for the audit
- Analyze internal documents at your offices to accumulate evidence to reduce the risk that the financial statements may be materially misstated
- Perform inquiry and analytical procedures
- Procedures are performed testing selected transactions, some of which may be verified with outside sources (your customers, vendors, banks, observing inventory counts, etc.)
- Make a critical assessment of audit evidence to assure that the financial statements are free of material misstatements
- Prepare a written report of findings noting any exceptions or questionable transactions among those audited
- Members of the Contryman Accounting and Auditing Committee review information, findings, and reports
- Present report findings to management
- Discuss opportunities for improvement within your organization as identified by the audit team