Audit

 

At Catrakilis & Company, you can count on private company experts who are knowledgeable in a wide array of industries.  This, coupled with international experience and resources, provides our clients with excellent customer service, technical skills and support. We have a proven track record of assisting international companies with their U.S. operations, middle market companies, family-owned businesses, as well as local small businesses.

 

Public Companies

 

As a consequence of a number of high profile business failures, securities laws and accounting standards are rapidly changing.  The integrity of published financial statements must embody this doctrine. Unlike taxation, which is governed by statute, accounting and auditing standards utilize a principles-based approach.

 

 

The end of the year is in sight and you should be planning out your financial outlook for the coming year.  One of the items will be whether or not you want an outside audit or review.  Audits and reviewes can be costly, so many small private companies do not have them done, but it is often in your best interest to be audited.    If you decide some time in the future that you will seek a bank loan or to raise venture capital, several years of audits or financial reviews will help assuage the lender or VC that you will be a good steward of their funds.   If you are a small company with no outside investors, you may choose to have a financial review done.  In a review, the auditor will speak with company management and personnel and review company records to access the validity of the numbers.  Unless the auditor feels it necessary, they do not have to gain independent confirmations of the numbers in the financials.
If you determine an audit is necessary, there are still ways to save money.  First, a smaller accounting firm will most likely cost less than one of the "Big Four":     PricewaterhouseCoopers Deloitte & Touche KPMG Ernest & Young		"To me, an audit should give you more than you expect: It is the art of objectively assessing audit risk areas of your company as they relate to your industry, testing internal controls, verifying assets and liabilities while helping you manage risk and improve your busines operations."
Historically, any venture fund would require a top four firm to be the auditor; however, since the implementation of Sarbanes-Oxley this is no longer a requirement.  If you elect to use a regional or local firm, you will want to be sure the firm has a strong reputation.