Blog

Sweating Over a Company Audit?

There is no need to stress when you have Vrakas on your side! Our goal is to form a relationship with your team and develop an understanding of your business operations and strategies. This allows us to make proactive recommendations and assist you in addressing business issues.

Audits generally offer a high degree of confidence in the accuracy of financial statements. Vrakas will issue a formal report that expresses an opinion as to whether the financial statements are presented fairly within the applicable financial reporting framework.

During your audit, Vrakas is required to understand your business’s internal controls and assess fraud risk as well as to corroborate the amounts and disclosures included in your financial statements. The work entailed is compiled through inquiry, physical inspection, observation, third-party confirmations, examination and analytical procedures. 

What to Expect

When undergoing an audit, you can expect the following:

  • Inquiring of management and others to gain an understanding of the organization itself and its operations, financial reporting and known fraud or error.
  • Evaluating and understanding the internal controls system.
  • Performing analytical procedures on expected or unexpected variances in account balances or classes of transactions.
  • Testing documentation supporting account balances or classes of transactions.
  • Observing the physical inventory count.
  • Confirming accounts receivable and other accounts with a third party.

Management Responsibilities

An auditor’s communications, including the audit report, highlight the fact that “financial statements are the responsibility of management.” This means you have some work to do, too. Management provides the underlying foundation on which audits are conducted. Therefore, it is essential that you are aware of your responsibilities:

  • To prepare and present the financial statements within an applicable financial reporting framework, including the design, implementation and maintenance of internal controls relevant to the preparation and presentation of financial statements that are free from material misstatements, whether from error or fraud.
  • To provide the auditor with all records and documentation and unrestricted access to those within the organization the auditor determines necessary to obtain audit evidence objectively.

Vrakas will help make suggestions about the form and content of the financial statements. We can also help to assist management by drafting them, in whole or in part, based on information provided by management. In those situations, management’s responsibility for the financial statements does not diminish or change.

This may sound daunting. The audit process can be complex and full of pitfalls, but at Vrakas is here for you. We make it a priority to understand your business operations and goals and strive to add value with the services we provide.

We also provide you with the best of the best, Tim Itzin. Tim has 30+ years of experience and serves as head of the firm’s accounting and auditing department. 

Give us a call at 262.797.0400 and we’ll connect you with our experts to help you get started on the process so it can be as efficient as possible.