Get the facts straight!
Tucker Fornale & Associates LLC
TFA provides audit and assurance services to a wide variety of small businesses.
Owners, lenders, and private investors often need assurance that the financial statements accurately represent the true financial position of a company. Our experienced and knowledgeable staff is committed to providing audit services with integrity, objectivity, independence and strict adherence to all professional standards, regulations and laws.
An audit provides the highest level of assurance. An audit is an 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.
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 perform test counts. We document and test each operating cycle, including sales and cash receipts, expenses and cash disbursements, and payroll. Our audit workpapers include a detailed work program to document the examinations and testing performed, as well as the client's supporting work papers.
A review can be a cost-effective way to meet the requirements of third parties (such as lenders). By conducting a review, TFA can provide limited assurance about a client's financial statements.
To do so, we utilize a variety of diagnostic tools, including analytic procedures, inquiries and general analyses of any items which may appear unusual and require explanation. 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.
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.
A compilation involves assembling data from your records and presenting it in an appropriate financial statement format. For some businesses, this statement is sufficient enough to meet management needs, as well as the needs of certain third parties.
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.