Thayer O’Neal’s Levels of Assurance to meet the different needs of stockholders, creditors, and private investors

Audit – 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 practice.

Our work includes 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.

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…

You get the highest level of assurance because we go outside 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.

We also perform physical inspections by observing your inventory counting methods and by 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 work program to document the examinations and tests performed, as well as the client’s supporting work papers.

Audits Not Just for Public Entities

All public companies are required to have an annual audit, but some nonpublic entities must undergo an annual audit as well. These include local governments, not-for-profit agencies and other organizations receiving governmental 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. Also, 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.

Review – Limited Assurance

Less extensive than an audit, but more involved than a compilation, a review engagement consists primarily of analytical procedures we apply to the financial statements, and various inquiries we make of your company’s management team. If the financial statements or supporting information appear inconsistent or otherwise questionable, we may need to perform additional procedures.

A review doesn’t require us to study and evaluate your company’s internal controls or verify data with third parties or physically inspect assets. Rather, a review report expresses 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). Reviewed financial statements must include all required footnotes and other disclosures.

Why might a business request a review engagement? It can be a good middle ground, providing the advantages of a CPA’s technical expertise without the work and expense of an audit.

Compilation- Lowest Level of Assurance

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.

Which Report Should You Use?

Each type of financial statement report may suit specific circumstances, depending on requirements from your client’s bank or other parties. Understanding each report’s unique strengths and weaknesses can help you choose the most appropriate one.

For more information, use the “Ask the Expert”

The Past

Financial Statement Services
Assurance service engagements traditionally take the form of an audit, review, or compilation of historical financial statements.

The Present

Transaction Services
Transaction advisory services including due diligence assessments and valuations of acquisition targets.

The Future

Prospective Financial Statements

Business plan development services include compilation, review and audits of prospective financial statements.

Why Choose Us

  • We are creative
  • We take a strategic approach
  • We are responsive to your needs
  • We  are efficient and strive to keep your costs down
  • We challenge our own assumptions and look at things from a fresh angle

ThayerONeal’s Other Services

Stockholders, creditors, and private investors often need assurance that the financial statements accurately represent the true financial position of a company.

What Clients Say

I have worked with Mickey over many years with a variety of health care clients, including both partnerships and corporations as well as private and public entities. He is my “go to” recommendation for all my clients.
Ivan Wood Partner, Strasburger& Price, LLP
Mr. O’Neal is one of the more thorough and client focused executives I have been associated with. His technical skills and calm demeanor are welcomed by both clients and staff. I always consider him when client firms call with accounting issues.
Mark K. Lindsey, Client Relations Executive