Audit and Attest
With stringent and ever-evolving requirements surrounding assurance procedures, we provide a dedicated team of professionals for your business and personal finance concerns. With integrity and knowledge HSC offers a full range of Audit & Attest Services to meet your professional needs:
Financial Statement Attest Services: Comparing Audits vs. Reviews vs. Compilations
Level of assurance. The level of assurance that the financial statements of a client are fairly presented is at its highest for an audit and at its lowest (none at all) for a compilation, with a review somewhere in between.
Reliance on management. In all three cases, the auditor begins with the account balances provided by management, but an audit requires a significant amount of corroboration of this information. A review requires some testing of the information, while a compilation almost entirely relies on the presented information.
Understanding of internal control. The auditor only tests the internal controls of a client in an audit; no testing is conducted for a review or a compilation.
Work performed. An audit requires a significant number of hours to complete because there are extensive procedures that are required to be performed before an audit opinion (report) can be issued by the CPA Firm. A review requires substantially fewer hours, while the effort associated with a compilation requires the least amount of time to complete.
Price. It requires vastly more effort for an auditor to complete an audit, so audits are much more expensive than a review, which in turn is more expensive than a compilation.
Demand. The users of financial statements, particularly investors, bankers and lenders with substantial amounts at risk are more likely to require an audit, since it provides the greatest assurance that what they are reading is a fair representation of the financial position, results of operations and cash flows of the reporting entity.
Employee Benefit Plans
We provide services in connection with qualified retirement plan compliance, operation, accounting, and auditing. We are members of the AICPA Employee Benefit Plan Audit Quality Center and are able to deliver value-added services to help our clients safeguard their plans’ compliance with relevant regulations. Our range of services include:
Employee benefit plan audits
Perform DOL limited scope disclaimer and full-scope audits
ERISA compliance consulting
Propose solutions for non-compliance operations
Assist with IRS Correction Program when applicable
Representation in DOL and IRS audits
Employee benefit plan tax returns (Form 5500)
Assistance with voluntary compliance programs
SOC (Service Organization Control) Audits
A Service Organization Control report is issued in connection with an Independent CPA Firm conducts a thorough examination of an organization to verify that the organization has an effective system of controls related to security, availability, processing integrity, confidentiality, and/or privacy. The report, which is issued by an independent accounting firm, provides reasonable assurance over the design and operating effectiveness of controls and clearly outlines any potential risks for customers or partners that are considering working with the organization. A typical scenario where an SOC Audit would be required would be where a collection agency was collecting the accounts of a financial institution which required that institution to provide confidential, personal sensitive information to the collection agency including sensitive personal financial information or personal identifiable information. If the financial institution is undergoing an audit then the financial institution’s auditors may charge the financial institution for applying audit procedures to the collection agencies operations. However, if the collection agency has undergone a successful SOC Audit, the collection agency may provide the SOC Audit Report the financial institution’s auditors and they may be able to rely on the report and avoid performing additional procedures.
Peer Review Services
Firms enrolled in a Peer Review Program are required to have a peer review, once every three years. The AICPA oversees the program, and the review is administered by an entity approved by the AICPA to perform that role.
Hagen, Sharp & Company, PLLC is a professional accounting firm with many years of experience in audit and attest engagements. Our approach to providing peer review services goes beyond scoring firms with a pass or fail perspective. We want our clients to benefit from their peer review and we believe the best way to approach peer review compliance is to plan and prepare in advance. Accordingly, we have designed our services to extend beyond conducting a peer review to include pre and post issuance reviews, inspections, consulting, engagement reviews and system reviews.
Quality Control Review and Inspections
According to the AICPA’s Peer Review Program, every firm should operate within the standards set by the AICPA. The peer reviewers at Hagen, Sharp & Company, PLLC will check your quality control systems to determine if you are operating within these standards. We also offer recommendations to maintain quality, effective CPA practices.
System Review
With a system review, you’ll know if your firm is in line with the quality control system according to the AICPA standards. Your accounting firm must get a system review if its engagements are conducted under the audit & attest standards.
Peer Reviews Consulting
Besides being an approved peer review firm, Hagen, Sharp & Company, PLLC has over 30 years of audit & attest experience with all of its principals having international firm experience. We provide efficient solutions to help firms increase value to quality control procedures. Our peer reviewer services also provide peer review consulting services to help firms maintain quality in accounting practices.
Pre & Post-Issuance Reviews
With pre & post-issuance reviews, the peer reviewer will review audit & attest documents and reports and will work in conjunction with the administering entity. The reviewer will access the reviewed firm’s compliance with professional standards, quality control policies and procedures.