general audit approach

Our audit approach will be based upon our experience with audit clients developed over the last 30 years. Our main objective is to render an opinion on the financial statements, based upon the work performed, in accordance with generally accepted auditing standards. However, our audit team is always aware of and looking for ways to provide advisory services that can assist clients in being more efficient and effective.

specific audit approach

In our initial planning phase, we will assess the general risks of the Company. This would involve comparison to other companies, consideration of national and local economic issues, and an independent analysis of the Company through ratio analysis.

Once this is completed, we move to the next step in the audit planning process, which is the development of the specific audit plan, and the design of tests of controls and of substantive tests.

Each of the above steps will be in compliance with the newly released auditing standards that will be in effect for the upcoming audit. These standards require a more detailed assessment of risk and review of internal control procedures than was necessary in prior audits.

We develop the tests of controls based upon the information gathered in the documentation of the Company's internal controls. The results of these tests of controls will allow us to determine the extent of our substantive tests of specific balance sheet accounts. In substantive testing, we focus upon confirmation, observation, vouching of invoices and recalculation of specific data.

During the tests of controls and substantive testing, we are in constant communication with management to evaluate with and inform them of any problems of adjustments we have noted.

Once the fieldwork is complete, we will have a meeting with management to finalize any adjustments and any other items that have arose during the audit. After the statements are completed, but before final issuance, we review the draft financial statements and reports with management to finalize any open items. Then we are available to meet with the finance committee or the board of directors to review the audit.