- Use by lenders and other outside parties
- Reporting requirement for certain governmental agencies
- When a formal report and the highest assurance is required
The audit is the highest level of assurance service that a CPA can perform and is intended to provide a user comfort on the accuracy of the financial statements. Burkhardt & Burkhardt, Ltd. will perform procedures in order to obtain “reasonable assurance” (defined as a high but not absolute level of assurance) about whether the financial statements are free from material misstatement.
In an audit, we are required to obtain an understanding of your business’s internal control and assess fraud risk. We are also required to corroborate the amounts and disclosures included in your financial statements by obtaining audit evidence through inquiry, physical inspection, observation, third-party confirmations, examination, analytical procedures and other procedures.
When performing an audit engagement, we are required to determine whether our independence has been impaired. Similar to a review, if our independence has been impaired, Burkhardt & Burkhardt, Ltd. cannot perform the audit engagement.
We will issue a formal report that expresses an opinion on whether the financial statements are presented fairly, in all material aspects, in accordance with the applicable financial reporting framework. In addition, we are required to report to you any significant or material weaknesses in your system of internal control that are identified during the audit. By becoming aware of internal control weaknesses and discussing these with your CPA, you might be able to improve the way you do business.
As the highest level of assurance, an audit typically is appropriate and often required when you’re seeking complex or high levels of financing and credit. An audit also is appropriate if you’re seeking outside investors or preparing to sell or merge with another business.