An audit is not just a commodity, whether it’s for a traditional business, governmental entity or a not-for-profit organization. You want – need – a partner to provide in depth analysis and recommendations and bring extra value to traditional services.
Your organization will always need to provide third parties with financial information, oftentimes in the form of an audit. Since you focus on providing top-quality services to your clients, customers, community and constituents, working with an experienced auditor to provide an independent opinion on the validity of your financial standing is important so that mission remains priority No. 1.
As technology continues to advance, so does the audit and attestation process by incorporating data analytics, leveraging big data and adopting a continuous/virtual approach to your audit.
To fully understand the world your business operates in and how it functions, your audit team must obtain further information to aid in the performance of an initial risk analysis and to discuss any other concerns or issues you may have.
The first step is to meet with your management to identify the lines and preferred methods of communication. That includes establishing a timetable to efficiently meet your expectations.
Developing a mutually beneficial plan is the next step, which consists of a risk assessment of your internal control environment to determine all risks associated with your audit have been addressed.
Fieldwork is the largest and most time-consuming piece of the audit. Your auditor will perform test of controls, where applicable, and design substantive tests of details/analytical procedures based on the results of our risk assessment procedures. To the extent possible, your auditor will use sampling procedures to assist us in our audit testing to ensure a cost-effective, efficient audit.
Once fieldwork is complete, the review phase ensures the audit meets the highest standards. This includes multiple levels of review at the manager and partner levels. Upon completion of the review process, it’s important for you to meet with your auditor to discuss preliminary findings and reports and to address any concerns you may have about the process.
The Ericksen Krentel team is ready to help you with your audit process to position you for continued financial growth and success while improving your community. That includes employee benefit plan audits, those that require Yellow Book compliance and audits that need to be conducted in accordance with Uniform Guidance.
At the end of our engagement, we will meet with your management team to present our audit report and corresponding letters. We will provide our recommendations for strengthening internal controls and operating efficiency, and work with you to implement those recommendations. We also understand you may periodically request our advice on accounting procedures and/or seek guidance on technical issues throughout the year. We will work with you to address any issues as they arise.
Modifications will be made to the audit approach if there are significant changes in the internal control structure and any information or evidence obtained in the prior year will be used to the extent possible to modify substantive audit tests in the subsequent years. Any compliance deficiencies noted in the prior years will be reviewed in the subsequent years for adopted compliance.
Your knowledge source for achieving your business and personal financial goals.
Ronald H. Dawson, Jr.