Audit Services, Compilations, and Reviews

Contact us at 253 203 3138 or request a free consultation online to learn more about our audit services. We'll help you decide whether an audit, compilation, or review is appropriate in your case.

Internal Audits, Hedge Fund Audits, and Assurance

J&J TAX ACCOUNTING PLLC employs the highest standards of quality and ethics in conducting all our audit and assurance services. We'll also share our insights for tightening up and improving internal controls.

Compilations

A compilation of financial statements is the basic level of service we provide when assurance is not required. With a compilation there is no opinion given as to the genuineness of the financial statements or any other form of assurance.

Reviews

Our compliance review services deliver limited assurance that an organization's financials have not been misstated. Our reviews are administered in line with all guidelines in Statements on Standards for Accounting and Review Services (SSARS) issued by the AICPA.

Internal audit

Internal audits are conducted by a person or a team within your organization. Internal audits can help executives and stakeholders get an accurate picture of a company's fitness. Company owners or shareholders typically commission an internal audit, which may focus on the following types of investigations:

• Financial accounting and reporting

• Policy and legal compliance

• Effectiveness of current procedures

• Operations concerns

External audit

External audits are conducted by unbiased third parties, such as government agencies and financial companies. Auditors must adhere to the Generally Accepted Auditing Standards (GAAS) when dealing with your company's information. External audits can be more official than internal audits and are often used to demonstrate the reliability of your organization's financial and operational records.

For example, a clothing retailer may hire an outside auditing agency to check for ways to improve inventory management, recruiting salespeople and marketing products.

Tax audit

Agents of the IRS conduct tax audits to verify the information filed on a company's tax returns is accurate, ensure your tax payments are correct and confirm any tax liabilities are reported appropriately. Agents must access all of your company's financial records and may conduct tax audits on-site, over the phone or digitally. A tax audit is an external audit because the agent works for an outside entity and is unrelated to your business.

The existence of a tax audit does not indicate any wrongdoing on the part of the company. The IRS chooses companies to audit each year based on a variety of data.

Financial audit

Financial audits focus specifically on an organization's financial status. Auditors work to verify records, including expenses, revenue, investments and assets. They usually compile this information into a final determination for investors or shareholders.

Operational audit

Operational audits are designed to evaluate and analyze an organization's operations, including policies, procedures, goals, philosophies and culture. Usually conducted internally, operational audits seek to identify areas of inefficiencies and make recommendations to reduce costs, streamline processes and improve policies.

For example, a manufacturer may conduct an audit of the company's supply chain to identify ways to reduce costs and streamline product delivery procedures.

Compliance audit

Compliance audits are used to determine if companies are compliant with internal and external regulations. This may include company standards, local regulations and state and federal laws.

Companies need to conduct compliance audits to maintain safe and fair working conditions, ensure product quality and minimize risks. For instance, a factory manager may commission quarterly compliance audits to ensure employees are following safety guidelines for using and maintaining equipment, cleaning facilities and taking appropriate breaks.

Information system audit

Information system audits review your organization's information technology to ensure you're using best practices for systems management and security. Software, IT and other tech companies rely on information system audits to:

• Make sure private customer data is secure

• Protect company servers and systems from hacking

• Evaluate data processing technology

• Recommend software and equipment for specific business needs, such as project management

Payroll audit

Payroll audits verify the accuracy of all information related to payroll processing, including:

• Tax withholding

• Employee hours and wages

• Employee information, like address and contact information

Businesses often have human resources or administrative professionals within the company who perform these audits.

Pay audits

Pay audits analyze pay data from your organization to determine any inequalities among gender, race, age or religion. Auditors compare your company's wages to that of similar companies in your area to ensure your payroll data is comparable, helping your business remain competitive to recruit employees.

Integrated audits

Integrated audits deal primarily with how an organization monitors and controls its financial accounting and reporting and are required for certain companies. Auditors adhere to strict guidelines developed by the Public Company Accounting Oversight Board (PCAOB) and work to identify and evaluate how a company oversees transactions, financial processes and operations.

Statutory audit

Statutory audits are audits conducted to comply with government regulations for public companies, banks, investment firms and insurance companies. They are generally external audits that verify certain financial reports are accurate and compliant, including:

• Bank statements

• Number of clients or customers

• Investment earnings

Many government agencies undergo statutory audits and make the findings available to the public, which improves transparency and public trust.

Value for Money audit

Value for Money audits are often implemented in nonprofit organizations to assess resource management and operations. These audits specifically study:

• Economy: Auditors review how companies acquire and distribute resources.

• Effectiveness: Value for Money audits evaluate how effective organizations are at using their resources to meet their overall financial and operational goals.

• Efficiency: Auditors analyze the efficiency of a company's processes and systems.

Forensic audit

Forensic audits are highly technical audits often conducted as part of a criminal or civil investigation. Forensic auditors apply both accounting knowledge and investigative procedures. The results of these audits may be used as evidence in legal proceedings or to resolve disagreements between corporations or company shareholders.

For example, an anti-fraud agency may investigate an investment company to verify the legal management of all corporate and client assets.

Agreed-upon procedures audit

During an agreed-upon procedures (AUP) audit, the parties requesting the audit and the party or parties conducting the audit agree to certain terms. Often, AUP audits are used to evaluate a specific process or procedure, and the results are only shared between the parties named in the agreement. For example, an organization executive may decide to audit how the product development division uses its resources.

Companies may also use AUP audits to learn more about a company they want to acquire or merge with. In AUP audit reports, auditors share objective information rather than recommendations or opinions.

Special audits

Special audits are typically internal audits that focus on a narrow function or process within a company. Owners, shareholders or upper-level management may authorize special audits. Sometimes a special audit is the result of a specific allegation of fraud or misconduct.

Special audits may investigate areas such as:

• Safety compliance

• Construction

• Hiring procedures

• Fraud

• Royalties

• Taxes