Assurance Services
ITAG Services
As a licensed independent Certified Public Accounting Firm, Mueller & Co., LLP is qualified to audit your company’s financial statements. Audited statements prepared by Mueller & Co., LLP will include our opinion, as an independent party, stating we have audited the company’s financial statements and have determined whether they are free from material misstatements.
How will an audit help my business?
An audit provides assurance of the reliability of the financial statements. It includes the following:
- Financial Analysis: Financial analysis performed in connection with an audit concentrates on identifying trends which can assist management in making more informed business decisions. Identification of a company's strengths and weaknesses will be addressed.
- Understanding of Internal Control Structure: As part of an audit, we obtain an understanding of your company’s internal control structure. As a result, we are able to make recommendations to improve internal controls.
- Management Comments: At the conclusion of the audit, we typically provide management with a “Management Comment Letter” which highlights business recommendations for improvements in operating efficiency and internal controls noted during the course of the audit.
Does my business need audited financial statements?
An audit is often required by an outside party that is providing financing. They need independent assurance that the financial statements accurately reflect the financial condition of the company. You may consider an audit of your business’ financial statements in one or more of the following situations:
- The business is in need of additional financing or is considering debt reorganization
- The owner is contemplating a potential sale of the business
- Shareholders require an audit to determine the value of the company related to a buy-sell agreement
- The owner or board of directors wants additional comfort offered by an independent third party’s opinion on the financial statements
Occasionally, a business owner needs a service that does not fit the mold of “standard” accounting services such as an audit, review or compilation. We provide services to assist with these needs:
- Performing agreed upon procedures to a specific financial area
- Preparing analytical procedures and ratio analysis
- Performing an internal control review
- Preparing important financial projections to assess expansion or other investment opportunities
After Mueller & Co., LLP performs any of the procedures outlined below, your company will be furnished with a management letter or report from our firm that details our findings and recommendations. These services are more fully explained as follows.
Agreed Upon Procedures:
Performing agreed upon procedures is a process of applying specific procedures to an area of a financial statement or within a specific accounting cycle. When agreed upon procedures are requested, a member of the Mueller & Co., LLP team will meet with you to determine what specific goals you are trying to accomplish and the procedures that will help achieve those goals. They are then performed to provide management with an opinion regarding the fairness of information presented. For example, a financial institution could require verification of the amount reported as accounts receivable on a customer's financial statement to ensure that the bank’s collateral (accounts receivable) is a viable asset.
Analytical Procedures/Ratio Analysis:
Analytical procedures and ratio analysis is a financial analysis of the company which discloses trends concerning the company’s:
- Financial stability
- Ability to meet its current obligations
- Operations
The services are based upon comparisons with prior years as well as with similar companies within your industry. The information provided in an analytical procedures and ratio analysis will assist management in focusing on financial strengths and weaknesses, as well as provide another way to interpret current financial information.
Internal Control Review:
An internal control review concentrates on the organization of the financial reporting structure and processes of the company. This review is different from most other accounting services because it concentrates on the control structure that produces the financial information and not on the financial information itself. During an internal control review, Mueller & Co., LLP will study a company to identify its internal control strengths and weaknesses. We will be particularly attentive to weaknesses and explain how these weaknesses could adversely affect the company’s ability to record, process, summarize and report financial information. This can be a key service in helping the company prevent losses due to fraud as a result of poor internal control structure. Losses as a result of fraud are often much higher than the costs of evaluating the internal control structure. We will provide recommendations to strengthen internal controls and consequently provide asset protection and assurance that transactions are executed in accordance with management’s authorization.
Financial Projections:
Comprehensive financial projections are usually necessary when seeking financing to expand, develop or purchase a new product line, or obtain a new building or for major equipment additions. Mueller & Co., LLP will work with your key personnel to develop a financial projection that will be reasonable based upon the underlying facts and assumptions, and that will answer the questions a bank or a potential investor may have.
