Authoritative and illustrative, financial statements provide a wealth of information about an organization’s financial position, performance, and risks. Such information is useful not only to business owners and mangers, but to investors, lenders, and government tax authorities. Knowing that financial statements need to contain certain information, and that this information is bound to be read and interpreted by a wide audience, DZH Phillips is committed to providing the education and resources you need to review, compare, and explain your organization’s financial statements.
Audited Financial Statements
An audit of an organization’s financial statements provides the highest level of assurance that the financial statements have been presented in accordance with generally accepted accounting principles. Audits can be requested and oftentimes required by an organization’s key stakeholders, including shareholders, lenders, and tax authorities, to lend confidence to an organization’s claims regarding its financial position and performance. The audit process culminates in an audit report, a formal opinion regarding the likelihood that an organization’s financial statements have been presented accurately and without any material misrepresentation or fraud.
Financial audits are an intense experience that commonly involves an integrated investigation, including confirmation with outside parties, observation of inventories, and examination of supporting documents and transactions. A skillful auditor is a partner in this process—someone who is willing to answer as many questions as he or she asks. At DZH Phillips, our audit professionals ask probing questions, often interviewing personnel other than top management in order to garner the type of keen insights and useful knowledge that can inform recommendations that ultimately lead to positive outcomes for growth, the efficiency of your operations, and the value of your business relationships. We also take the time to explain our findings and recommendations fully and tailor our presentations to the specific needs and interests of your board or management.
DZH Phillips has a unique audit process called Audit Advantage, a seven-step audit review that enhances service, understanding, and communication and leads to an in-depth knowledge of your organization, its systems, procedures, and operations. More.
Reviewed Financial Statements
DZH Phillips has conducted financial statement reviews for many businesses and nonprofit organizations. Reviewed financial statements fall beneath audited financial statements in their ability to provide reasonable assurance that an organization’s financial statements are free of material errors or misstatements. While not a full financial audit, a review may be adequate for many businesses. The process entails a CPA investigation of accounting policies, principles, and practices, recordkeeping, and changes in business activities. An analysis is completed to identify any issues with the financial statements that may need explanation; however, an organization’s underlying balances, inventory, and transactions are not subject to the same stringent tests that are performed during a financial audit.
Compilation Financial Statements
At the lowest end of the assurance spectrum are compilation financial statements, which do not offer any formal opinion as to whether the financial statements are accurate and free from material error. While compiled and presented by an accountant, these statements are not subject to analysis, verification, or review. Compilation financial statements are based solely on information provided by an organization, about the organization, and as such, the organization ultimately is responsible for the accuracy and completeness of the financial statements.
DZH Phillips prepares compilation financial statements for organizations seeking a professional presentation of financial information, usually for the benefit of the business owners or their financial institution.