Professional Services
Auditing & Accounting
Your financial statements should provide more than a compliance document for lenders or other third parties. Fruchter Rosen & Company, P.C.. will aid in developing financial systems and statements that help you make informed decisions.
Our audit and accounting practice is subject to peer review under the American Institute of Certified Public Accountants Peer Review Program to provide independent assurance that our firm provides quality services.
- Financial Audits
- Review of Financial Statements
- Compilation of Financial Statements
- Single Audits
Financial Audits
When third parties require the highest level of assurance as to the reliability of financial statements, we are engaged to perform an audit. Audits are performed according to Generally Accepted Auditing Standards (GAAS).
As part of our audits, we obtain an understanding of:
- The design of relevant policies and procedures of the control environment, accounting system, and control procedures.
- Whether the policies and procedures have been placed in operation.
- Testing accuracy of a clients transactions and account balances.
- Evaluating necessary footnote disclosures.
- The client's compliance with Generally Accepted Accounting Principles (GAAP).
The partners and staff of the audit team work closely with the client from the beginning and throughout the entire audit. Upon completion of the audit, a management letter is prepared to identify operational procedures that warrant improvement, along with recommendations for correcting the problems.
Review of Financial Statements
When management or third parties request assurance as to the reliability of financial statements, but do not require an audit, a review is often the appropriate level of service. We perform numerous analytical procedures and inquiries of company personnel that provide a reasonable basis for expressing limited assurance that there are no material modifications that should be made to the financial statements. A review report, which accompanies your financial statements, indicates that we are not aware of any material modifications that should be made to your financial statements in order for them to be conformity with the GAAP.
Compilation
Performing a compilation does not include verification procedures performed during an audit or review, and usually suffices when financial statements are being used for management purposes only.
We prepare financial statements based on existing financial records. Material adjustments to the financial records are generally uncovered due to our knowledge of the business and industry and our professional experience and judgment. The compilation report states that the financial statements were compiled from the client's financial records and that no audit or review procedures were performed.
Single Audits
A single audit is a term used in reference to an entity-wide audit consisting of two main parts: an audit of the federal financial assistance programs and an audit of the basic financial statements. This also includes gaining an understanding of and testing the internal controls over federal programs and testing compliance with general and specific requirements from major, and in some cases, non-major programs. Each of these components result in numerous audit reports. An auditor integrates the various programs' compliance auditing requirements and the requirement to consider the organization's internal controls with, and audit, of the entity's basic financial statements.