Kelley Galloway Smith Goolsby, PSC performs a wide range of audit and assurance services that can be tailored to any company, regardless of size or type of business. Our firm has experience in Yellow Book, including A-133, Non-profit organizations, Employee Benefit Plans, Construction Contractors, Financial Institutions, and many other small business types. The service that you can expect from our team goes beyond simply delivering a quality audit, review, compilation or agreed upon procedures engagement that meets your compliance requirements. We see our assurance services as an opportunity to return meaningful value to your organization.
The highest and most costly level of independent financial reporting is the audit. An audit is performed to objectively present the financial statements in accordance with Generally Accepted Accounting Principles (GAAP). The audit is planned and performed to obtain reasonable assurance that the financial statements are free from material misstatement. During the audit, auditors will examine on a sample basis internal supporting documents and other accounting records that support amounts recorded in the financial statements. Auditors will also make inquiries of selected company personnel as well as confirm certain assets and liabilities by correspondence with selected independent customers, vendors and creditors.
Agreed-Upon Procedures Engagements
During agreed-upon procedures engagements, the firm issues a report on findings based on the performance of specific procedures that are agreed to by the accountant and a third party. The scope of procedures can vary widely based on your needs and what you believe is appropriate.
A review is a procedures-driven engagement where an accountant expresses “limited assurance” (but not an opinion) about financial statements. In expressing limited assurance, an accountant states whether or not the financial statements contain material modifications that should be made in order for them to be in conformity with a basis of accounting, for example, generally accepted accounting principles. In a review engagement, the accountant performs analytical procedures and inquiries of entity management to obtain a reasonable basis for the limited assurance
Yellow book & SINGLE AUDITS
Many governmental and not-for-profit entities require an audit of their financial statements that is in accordance with Generally Accepted Government Auditing Standards (aka Yellow Book). A single audit is generally required for organizations expending more than $750,000 in federal funds. A single audit goes beyond the procedures performed in a regular financial statements audit by providing an opinion on an organization’s compliance, in all material respects, with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement that are applicable to its major federal programs. A single audit also reports on internal control over compliance with requirements of laws, regulations, contracts, and grants applicable to federal programs
In compiling financial statements for a client, we present information that is the "representation of management" and expresses no opinion or assurance on the statements. Compilations don't require inquiries of management or analytical procedures. Instead, we rely on our knowledge of accounting principles and a general understanding of your business.
Banks often require compilations from an independent CPA as part of their lending covenants.
employee benefit plan audits
Employee benefit plans that have more than 100 eligible participants may be required by ERISA to conduct an employee benefit plan audit. If a company fails to have an audit performed, it will be faced with penalties from the DOL and the IRS. The audit requirement is applicable to defined contribution plans, defined benefit pension plans, and certain health and welfare plans.
We are committed to providing our clients with a quality audit; therefore, we are members of the AICPA Employee Benefit Plan Audit Quality Center.