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JRM Financial Associates Audits - Reviews - Compilations

Official Reports as Needed...

The need for an audit is not limited to public companies.  While all public companies are required to have an annual audit, some nonpublic entities must undergo an annual audit as well.  These include local governments, not-for-profit agencies and other organizations receiving government grants.

Moreover, some financial institutions require audits of nonpublic companies based on the financing amount and/or the bank's assessment of the company's risk. Finally, companies with absentee ownership (such as those owned by investment firms, or individuals who no longer run the business) may order audits as checks of their management teams.

JRM understands that your business or organization's stockholders, creditors, or private investors have different levels of risk tolerance.  For that reason, our Audit Services in NJ and elsewhere are provided at three levels of assurance to meet your needs.

JRM Audit Service - Highest Level of Assurance

An audit provides the highest level of assurance.  An audit is a methodical review and objective examination of the financial statements, including the verification of specific information as determined by the auditor or as established by general New Jersey accountant practice.

JRM's audit services in NJ and in other locations include a review of internal controls, testing of selected transactions, and communication with third parties. Based on our findings, we issue a report on whether the financial statements are fairly stated and free of material misstatements.

Having JRM perform an Audit allows you to...

  • Satisfy stakeholders such as employees, customers, suppliers and pressure groups, as well as the investing community, as to the credibility of published information.
     
  • Facilitate the payment of corporate tax, goods and services tax, and other taxes on-time and accurately, thereby avoiding interest, penalties, and investigations.
     
  • Comply with banking covenants.
     
  • Help deter and detect material fraud and error.
     
  • Facilitate the purchase and sale of businesses.
     

Here's what you get...

JRM delivers the highest level of assurance because we go outside of your company to obtain more information.  Typically, we'll have written communication with:

  • Your customers, to check outstanding receivable balances,
  • Your banks, to confirm cash or debt balances and terms,
  • Your vendors, to verify outstanding payable balances, and
  • Your attorneys, for information on pending or threatened legal action.

JRM also performs physical inspections by:

·      Observing your inventory counting methods

·      Performing test counts.

We document and test each operating cycle, including sales and cash receipts, expenses and cash disbursements, and payroll. Our audit papers include a detailed program to document the specific examinations and testing performed, as well as organizing and including the client's supporting work papers.

 

JRM Business Accounting Review - Limited Assurance

Less extensive than an audit, but more involved than a compilation, a review engagement consists primarily of analytical procedures that JRM Financial Associates applies to the financial statements, and various inquiries we make of your company's management team. We determine whether the financial statements or supporting information appear inconsistent or otherwise questionable, and can perform additional procedures as necessary.

A JRM Business Accounting Review doesn't require us to study and evaluate your company's internal controls or verify data with third parties or physically inspect assets. Instead, a review report provides limited assurance in the form of the statement: "We are not aware of any material modifications" for the financial statements to be in conformity with the Generally Accepted Accounting Principles (GAAP). Financial statements that are reviewed must include all required footnotes and other disclosures.

Why might a business request a review engagement? Many companies select this level of audit services in NJ and elsewhere because it can be a good middle ground, providing the advantages of a CPA's technical expertise without the work and expense of an audit.

 

JRM Accounting Compilation Service - Lowest Level of Assurance

In compiling financial statements for a client, JRM presents 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 New Jersey accountant principles, GAAP, and a basic understanding of your business.

Banks often require compilations from an independent CPA as part of their lending covenants.

Which Report Should You Use?

Each of the financial statement reports listed above will suit specific circumstances. Ultimately, your selection will depend on requirements from your client's bank or other parties, as well as meeting budgetary needs.

Understanding the unique strengths and weaknesses of each Accounting Report can help you select the most appropriate one. Please call JRM Financial Associates if you have questions or complete the form below for a Free Consultation.

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