Understanding Auditing on Both the Individual and Corporate Levels

by | Aug 27, 2019 | Accounting Services

Although small businesses usually don’t do this, most mid-sized and nearly all large businesses compile financial statements for owners, decision-makers, and stakeholders to view. To ensure that these financial statements are accurate and complete, businesses often hire accounting firms like KMA Bodilly to conduct audit services in Madison, WI. Audits are also carried out to make sure businesses are adhering to all relevant laws. Here’s some more info about audit services in Madison, WI, that you should be familiar with.

Audits Are Often Confused With These Services

Audits, in technical accounting terminology, refer to making sure that financial statements and reports using historical information are correct. Two other terms confused with auditing are assurance and attestation services. Assurance refers to all services that bolster the quality of decisions made within businesses. Attestation covers all services under the umbrella of assurance, though they must be conducted by independent auditors.

Non-Public Companies Often Don’t Need External Audits

Public companies are those that trade their stock on exchanges like the Nasdaq. They are legally required to submit financial statements every year that have been audited by independent Certified Public Accounting firms like KMA Bodilly. These statements must be backed up by an auditor’s opinion, which is included as part of a larger audit report. Such audits cost tons of money. For this reason, as well as since they’re not required by private companies, non-public companies almost never pay for such services.

What If You’ve Been Audited?

Audit services also include defending clients, both individuals and businesses, that have been targeted by the Internal Revenue Service for an audit. These audits are mandatory and must be complied to. Paying a reputable provider of audit defense services is a great investment for taxpayers who’ve been audited, as penalties that could otherwise arise often cost more than the defense does in the first place.

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