A business audit is a serious undertaking. When business owners request Audits in Tulsa, they are committing to a thorough examination of their financial records and a certain amount of disruption to their normal activities. However, if audit is required, it must be done.
Why Would a Small Business Need an Audit?
Small businesses usually request an audit because a third party, such as an investor or lender, insists upon it. They want an assurance of the financial condition of the business before making a financial decision. Usually, third parties are particularly interested in knowing that:
• Cash flow records are accurate;
• There are no foreseeable problems with accounts receivable;
• All sales are included in the revenue reporting accounts.
Is an Audit the Only Option?
A full audit is the most thorough, complex, and expensive level of assurance that a CPA can provide. Although third parties routinely request audits, ask if their needs could be satisfied with a less-costly option.
Compilation: Financial information is compiled in a standard format, but is not verified.
Agreed-upon Procedures: One aspect of the business financial records is reviewed. A report will be prepared that contains the requested information, but the CPA will not provide an assurance.
Review: A review could be considered an “audit light.” Financial information provided by management will be analyzed, but not to the extent of a full audit. Limited assurance will be provided.
Audit: A full audit includes the highest level of assurance from the CPA. The validity of all financial information will be confirmed and internal financial controls will be tested.
When an Audit is Necessary
• An equity investor normally requires an audit. Once a company has been in business for a while, investors will not be satisfied with anything other than a full audit.
• Venture capitalists and banks often require an audit before making a loan.
• When a business is up for sale, an audit will be necessary for prospective buyers.
• If a business is going public with an IPO, an audit is essential.
For over ten years, Muret CPA PLLC has been providing a wide range of accounting and tax services, including Audits in Tulsa, OK. They are focused on offering both businesses and individuals the highest quality professional CPA services, increasing efficiency and minimizing taxes. Contact them to learn how they can enhance the profitability of your business.