Audits & Assurance are services provided by certified public accountants in order to improve the understanding of business information so that decision makers can make more informed and better decisions. Audits, specifically, is a type of service that validates a company’s financial statements.
Audit of Financial Statements
Most people think that when an accountant prepares their financial statements or makes adjustments to their books, that the accountant is performing an audit. This is rarely the case. An audit provides the highest level of assurance and is a time-and-information intensive engagement (or project). Unlike the days of old, when every account was reviewed and checked, today’s audits are performed using a risk-based approach in order to examine what’s important. This risk-based approach requires more critical thinking and more knowledge in financial analysis in order to perform a thorough audit. Read more about what your business received from performing an audit.
Internal Control Assessment
At times you may need a trained outside professional to evaluate your company’s operations to determine if the appropriate controls are in place to ensure proper handling of resources, to enhance the accuracy of financial reporting and to protect yourself from potential employee theft. As part of Cheryl Jefferson & Associates’ services, we make recommendations that help your company become stronger and more profitable by correcting any inefficient or ineffective operating and accounting procedures we find that don’t add value to your internal control systems. Read more about what Cheryl Jefferson & Associates can do to improve your internal controls.
We work with business lenders and financing companies to help ensure assets assigned as collateral exist and are accurately valued. The common types of asset-based loans for small businesses are backed by accounts receivable, inventory and/or property & equipment. This includes accounts receivables, inventory, and property & equipment. Read more about they types of questions CJA asks during collateral audits.
Compliance Examinations or audits are useful when you need assurance for:
- Contract Compliance
- with contract terms and clauses
- determining which relationships you have in place with auto-renewing contracts
- Bank Covenant Compliance – a required audit from a bank, such as when applying for a loan. Firms such as CJA can assist with an audit to perform
- Calculation of ratios
- Evaluation of trends in noncompliance