Frequently Asked Questions

What is an audit?
A. The purpose of an audit is to express an opinion that provides reasonable assurance that the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
What is a review?
A. A review consists of primarily applying analytical procedures to management’s financial data and making inquiries of company’s management. A review is substantially less in scope than an audit, the objective of which is the expression of an opinion regarding the financial statements as a whole. Accordingly, no such opinion is expressed in a review report. A review provides limited assurance that there are no material modifications that should be made to the financial statements.
What is a compilation?
A. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements.
How are your fees determined?
A. Our fees are typically based on the amount of time required to complete the work on any engagement. Below are some tips to help minimize that time.
For the preparation of your individual income tax return:
1. Complete the tax organizer we provide. There are questions at the beginning that may also alert us to potential tax savings for which you may be eligible.
2. Verify amounts in the tax organizer match the original tax documents.
3. Use the tax organizer to help you organize all of your tax documents so that your original packet of information is as complete as possible.
4. If we ask questions during the preparation process, it is very helpful if you provide information as quickly as possible. This helps avoid repeated follow-up attempts.
5. Seek tax advice during the year if you have any important transactions. This can not only help reduce fees, but it can also help reduce your tax liability as there are often differing methods of completing transactions that may have different tax consequences.
For the preparation of your business income tax return:
1. Reconcile bank and credit card accounts regularly to make sure all transactions are captured.
2. Reconcile end of year balance sheet balances to external documents or subledgers.
3. If you use QuickBooks, do not use the void check feature if the check was written in a prior year. Instead void the check manually in the current year with a journal entry.
4. Post the adjusting journal entries we provide each year after we prepare your tax return.
5. Verify retained earnings matches the prior year tax return.
6. Note in the memo whether fixed asset purchases are new or used.
7. Provide complete information to prepare the tax return.
8. If we ask questions during the preparation process, it is very helpful if you provide information as quickly as possible. This helps avoid repeated follow-up attempts.
9. Seek tax advice during the year if you have any important transactions. This can not only help reduce fees, but it can also help reduce your tax liability as there are often differing methods of completing transactions that may have different tax consequences.
10. Ask questions during the year if you are uncertain how a transaction should be recorded.