The scope of today’s services extend far beyond the standard audit engagement offering an opinion on the accuracy of financial statements by our Chartered Accountants. It also encompasses review engagements and special reports, which include evaluating the operational procedures followed to produce the financial statements.
Quite simply, financial audits exist to ensure that your business's financial information is "true and fair". For small businesses, the main concern is that all expenses and revenues are accurate so that the IRS knows exactly the financial status of the business and can confirm all deductions are valid. There are several reasons and benefits to regularly audit your finances. While a basic audit can be performed by the business owner (who should be regularly making sure financial information is accurate and procedures are efficient), it is wise to hire a CPA to do a systematic overview of your finances.
Audit of your business can be an effective way to prevent yourself from receiving an IRS audit, which can be stressful and time consuming. Before looking deeper into your finances, there are several initial tips that can be used to improve your financial standing and prevent an IRS audit.