Financial statement Audits
The audit of financial statements is the examination of an entity's financial statements and accompanying disclosures. The result of this examination is a report attesting to the fairness of presentation of the financial statements and related disclosures, in accordance with an applicable financial reporting framework. The purpose is to increase the confidence of users in the credibility of the financial statements.
We also consider the organisation’s financial controls and procedures to ensure appropriate audit procedures are designed and performed. This is not for the purpose of expressing an opinion over the effectiveness of the internal controls however, where potential improvements in internal control are identified, these are reported to governance.
The requirement for an audit could be either statutory or for other various reasons, including agreements with members, shareholders, funders and other stakeholders, to fulfil financing or constitutional requirement’s.
- Audit of Financial Statement
This is a legally required external audit, usually on financial statements and conducted annually to meet a specific set of mandated requirements. All entities, including companies, limited liability partnerships and charities, that meet certain criteria such as being above a certain size, dollar or of public interest, may be required by law to have their financial statements audited.
- Other Statutory Engagements Include:
Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) audits or review
Real Estate Trust account audits
Private Training Establishments audit of Student Fee Protection
Financial Statement Reviews
We provide a conclusion as to whether anything has come to our attention to indicate that the financial statements have not been prepared in all material respects, in accordance with the applicable financial reporting framework. The purpose of a review is still to provide the users of the financial statements with confidence.
We obtain a meaningful level of assurance that the financial statements as a whole are free from material misstatement, whether due to fraud or error. Our conclusion is expressed as a negative opinion statement. For example: “Based on the work performed, as described in the report, nothing has come to our attention ...”
The procedures performed for a review are less than those performed for an audit and therefore provide a lower level of assurance than an audit. They mainly consist of enquiry and analytical procedures, after obtaining an understanding of where material misstatements are likely to arise in the financial statements.
A review generally requires less work to complete, and may be less costly and time consuming compared to an audit.
Internal Audit / Internal Control System Reviews (great for Governance internal control “health checks”) and Agreed Upon Procedures (AUP)
Internal Auditing provides independent and objective assurance which can add value and improve an organisation’s operations. It helps an organisation accomplish its objectives by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.
Agreed Upon Procedures (AUP)
An agreed upon procedures engagement where we agree with you to perform specific procedures with respect to a subject matter. In such an engagement, we report the factual findings resulting from the procedures performed.
The level of assurance given by us in an agreed upon procedures engagement varies depending on the nature of the engagement and the specific procedures requested by you.
The factual findings are restricted to the parties that have agreed to the procedures.
Meetings are generally held to (1) understand the purpose of the engagement, (2) discuss and agree on the specific approach and procedures to be performed, (3) discuss and agree on the anticipated form and content of the final report on the factual findings, and (4) discuss and agree on the limitations where no assurance on assertions will be expressed.