Financial Statement Audit Services

A financial statement audit is an independent examination of your company’s financial statements by a CPA. It provides reasonable assurance about whether the financial statements are free from material misstatement and includes the auditor’s opinion on whether they are fairly presented, in all material respects, under the applicable financial reporting framework, such as U.S. GAAP.

An audit provides the highest level of assurance available for financial statements, but it is not an absolute guarantee. Management remains responsible for the financial statements and supporting records. Our role in the audit is to examine that information independently.

Has a third party asked you for audited financial statements? Before the engagement begins, you need to know exactly what the request covers, when the report is due, and whether an audit is the right level of service. That is where we start.

When Do You Need a Financial Statement Audit?

Many private companies obtain an audit because a lender, investor, board, contract, or other third party requires audited financial statements.

You may need audited financial statements for:

• A lender or loan covenant
• An investor or outside owner
• A board or governing document
• A business sale or acquisition
• A contractual or regulatory obligation
• A bonding requirement

The written request usually tells you which level of service is expected. If it asks only for “CPA-prepared financial statements,” a review or compilation may be enough.

When the requirement is not clear, we help you ask the right questions. In many cases, we can communicate with the requesting party to confirm the reporting period, deadline, and type of report it will accept.

When an Audit May Not Be Necessary

If no outside party or governing requirement calls for an audit, it may not be the right place to start. A compilation or review generally costs less, takes less time, and may satisfy the requesting party. We’d rather help you choose the right service up front than recommend work you don’t need.

What a Financial Statement Audit Involves

We perform audits under generally accepted auditing standards issued by the AICPA, and we must be independent of your company. That independence is what gives the auditor’s opinion its value to an outside party.

1. Confirm the Requirements

   We identify who needs the statements, which period they must cover, the applicable reporting framework and basis of accounting, and when the report is due.

2. Provide a Fee Estimate and Engagement Letter

   Once we agree on scope and timing, we prepare a fee estimate and send an engagement letter for your review and signature before fieldwork begins.

3. Plan and Assess Risk

   Before fieldwork begins, we learn how your business operates, obtain an understanding of the internal controls relevant to the audit, and identify the areas that need closer attention.

4. Gather and Test Evidence

   We inspect supporting documents and test selected transactions and balances based on the risks identified during planning. These procedures give us the evidence needed to form our opinion.

5. Review and Resolve

   We discuss open items and proposed adjustments with your team. Management provides a written representation letter before we issue the report.

6. Issue the Auditor’s Report

   We complete our evaluation, form an opinion, and issue the report alongside your audited financial statements.

What Information Will We Request?

No two audits require the same information. We tailor the request to your company and the scope of the engagement.

Your team may need to provide:

• The year-end trial balance
• The general ledger
• Bank and debt reconciliations
• Supporting documents for selected transactions
• Loan agreements, contracts, and leases
• Information supporting significant estimates
• Prior-year financial statements
• Details about significant or unusual transactions

We’ll explain what each item is for and when we need it. Organized records and quick responses keep the audit moving.

Audit vs. Review vs. Compilation

An audit, review, and compilation involve different levels of CPA work and assurance. The right choice depends on what the requesting party will accept.

Learn more about the difference between audit and review, when compiled financial statements may be enough, or read our guide to audit vs. review vs. compilation ›

Industries We Serve

We provide financial statement audit services for privately held companies across several industries.

Why Work With CMP for Your Financial Statement Audit?

You’ll know who is leading your audit and what your team needs to provide at each stage. You’ll also have direct access to the professionals responsible for the engagement when questions come up.

CMP has served businesses for nearly 50 years. Dustin Wood and Tara Williams bring nearly 39 years of combined experience working with financial statement engagements across several industries, including construction, manufacturing, agriculture, banking, and transportation.

We serve clients from our offices in Logan, Layton, and St. George, Utah, and work remotely with companies across the Mountain West and even nationwide through secure document sharing and remote meetings.

Explore our complete range of audit and assurance services ›

Frequently Asked Questions About Financial Statement Audits

Need Audited Financial Statements?

An audit request may include a specific reporting period, deadline, or accounting framework. Before the engagement begins, it’s important to understand exactly what the lender, investor, board, or other third party expects.

Send us the request or agreement, and we’ll help you confirm the requirements. We’ll also explain the audit process, the information your team will need to provide, and the next steps for getting started.