Frequently Asked Questions

A financial audit is an independent examination of an organization's financial records, statements, and internal controls. Conducted by certified auditors, audits verify the accuracy and completeness of financial information, assess compliance with accounting standards, and evaluate the effectiveness of internal controls. Audits provide assurance to stakeholders that financial statements fairly represent the organization's financial position and performance.

Financial audits serve multiple important purposes. They provide credibility and assurance to stakeholders, investors, lenders, and partners. Audits help identify operational inefficiencies, strengthen internal controls, and ensure compliance with regulations. They can also help detect errors or fraud, improve financial reporting processes, and provide valuable insights for strategic decision-making. For many businesses, audits are required by law, lenders, or investors.

Internal audits are conducted by auditors employed by or contracted by the organization itself. They focus on evaluating internal controls, risk management, and operational efficiency. Internal audits help management improve processes and ensure compliance with internal policies. External audits are conducted by independent auditors who are not employees of the organization. They provide an objective assessment of financial statements and compliance with accounting standards, primarily for external stakeholders like investors, lenders, and regulators.

The duration of a financial audit depends on several factors, including the size and complexity of your business, the quality of your records, and the scope of the audit. A small business audit might take 2-4 weeks, while a larger, more complex audit could take 2-3 months or longer. The audit process typically includes planning, fieldwork, reporting, and follow-up phases. We work with clients to establish realistic timelines and keep them informed of progress throughout the process.

You'll need to prepare various financial documents, including bank statements, general ledgers, financial statements, invoices, receipts, contracts, payroll records, tax returns, and supporting documentation for significant transactions. You should also have documentation of internal controls, policies, and procedures. We provide a detailed document request list before the audit begins to help you prepare. Well-organized records significantly speed up the audit process.

Audit costs vary based on factors such as business size, complexity, industry, scope of work, and quality of records. We provide detailed estimates after understanding your specific needs. Costs typically include planning, fieldwork, reporting, and follow-up services. While audits represent an investment, they provide significant value through improved credibility, risk management, and operational insights. We work to provide cost-effective solutions that meet your needs.

If an audit identifies problems or errors, we work collaboratively with you to understand the issues and develop solutions. We provide detailed explanations of findings and practical recommendations for addressing them. Most issues can be resolved through adjustments to financial statements or improvements to processes. Our goal is to help you improve, not to criticize. We approach findings constructively and work with you to implement solutions.

You don't need to be present for the entire audit, but you should be available to answer questions, provide additional information, and facilitate access to records and personnel. We typically need access to key personnel, including finance staff and management, at various points during the audit. We work around your schedule as much as possible and try to minimize disruption to your operations. Most of our work can be done independently, with periodic check-ins.

We conduct audits in accordance with Canadian Auditing Standards (CAS) and Canadian Generally Accepted Accounting Principles (GAAP). We also follow professional standards established by Chartered Professional Accountants (CPA) Canada and provincial accounting bodies. Our auditors maintain current certifications and participate in continuing professional education to stay current with evolving standards and regulations.

The frequency of audits depends on your business's specific circumstances. Public companies are typically required to have annual audits. Private companies may need audits annually, biennially, or as required by lenders or investors. Some businesses benefit from more frequent audits, while others may need audits less often. We can help you determine the appropriate audit frequency based on your needs, regulatory requirements, and stakeholder expectations.

A compliance audit evaluates whether an organization adheres to applicable laws, regulations, industry standards, and internal policies. Compliance audits help ensure that businesses meet regulatory requirements, follow industry best practices, and comply with contractual obligations. These audits can identify compliance gaps, assess the effectiveness of compliance programs, and provide recommendations for improvement. Compliance audits are particularly important in heavily regulated industries.

We strive to minimize disruption to your business operations. We work efficiently, schedule work during convenient times when possible, and try to complete most work independently. However, we will need periodic access to records, systems, and personnel. We coordinate with you to schedule these interactions at convenient times. Good preparation on your part also helps minimize disruption by ensuring we have what we need when we need it.

After completing the audit, we provide a comprehensive audit report that includes our findings, opinions, and recommendations. We typically schedule a meeting to discuss the results and answer any questions. We also provide ongoing support to help implement recommendations and address any questions that arise. Our relationship doesn't end when the audit is complete—we're available for follow-up questions and support as needed.

When choosing an auditor, consider their credentials, industry experience, communication style, availability, and fee structure. Look for certified auditors with experience in your industry who communicate clearly and are responsive to your needs. Ask for references and check them. Consider whether the auditor's approach and values align with your business. The right auditor should be a partner who helps improve your business, not just someone who checks boxes.

Audit reports typically include an executive summary, auditor's opinion on the financial statements, detailed findings, assessment of internal controls, compliance evaluation, and recommendations for improvement. Reports are tailored to your needs and may include industry-specific insights, risk assessments, and strategic recommendations. We ensure reports are clear, actionable, and provide real value to your business.