Why Should Businesses Conduct Regular Audits?

There are few things more important to the success of a business than continually checking to ensure it is operating to its fullest potential. There are many ways that business owners can do this, however, in most cases, audits are essential. Essentially, audits can provide clarity when it comes to the financial status of a business, and in many cases, these reports can be then handed over to creditors, lenders, and owners when necessary. If you are a business owner and you require this information regarding your business, you must continue reading and speak with the experienced New Jersey CPAs at Werdan Devito, LLC. Here are some of the questions you may have:

What auditing services does your firm provide?

As previously stated, audits help ensure that businesses are always optimally functioning, as well as establishing credibility to all parties of interest, such as shareholders or lenders. For years, we have handled a wide array of auditing matters to assist business owners throughout the state of New Jersey. Some of the auditing services that our firm can provide your business with are as follows:

  • Auditing your business’s tax records
  • Assessment of internal controls
  • Analysis of bookkeeping processes within your business
  • Comparison to competitors

What is the difference between a compilation and a review?

Essentially, though audits are fantastic tools for all businesses to use, there are times where full audits are simply not necessary. Furthermore, audits are rather time-consuming and can, at times, be quite costly. In this situation, if you are still looking to discover how your business is operating, though you do not wish to conduct a full audit, you can still have a compilation or a review conducted which will provide you with much of the useful insight you and your business require.

In a nutshell, a compilation is a simple presentation of financial statements and other information regarding your business. We can read and interpret these statements to execute a compilation report, which can then be used to compare monthly or quarterly statements. However, you should understand that compilations are not entirely thorough, and at times, the information obtained from a compilation may not be entirely accurate.

For this very reason, business owners who do not want to conduct an audit may instead choose to conduct a review, which is more thorough than a compilation. A review will essentially ensure that your company’s financial statements meet the terms set out by the Generally Accepted Accounting Principals, and though this is still a limited assurance, they generally do not require serious modifications.

Contact our experienced New Jersey firm

Werdann DeVito LLC is an experienced Certified Public Accountant firm serving clients throughout New Jersey with all of their financial needs. If you need quality assistance with accounting, tax, or consulting services, contact Werdann DeVito LLC today.