AUDIT AND ASSURANCE
Audit and Assurance Services can be considered the very heart of a CPA practice. MHCS has built an excellent reputation for providing our clients with a complete range of auditing and assurance services to meet their diversified and sophisticated needs. Some of the services we provide include:
- Financial statement audits, reviews, and compilations
- Employee benefit plan audits
- Fraud detection and deterrence
- Red Flag Reporting
Our firm has a peer review performed by another qualified CPA firm every third year over the quality controls of our audit and other assurance services. On December 7, 2018, our most recent peer review was successfully completed. A copy of our most recent peer review report can be found here.
Audits, Reviews, and Compilations
We approach financial statements not simply as snapshots of your business at a given time, but as resources that tell you where your risks and opportunities lay. We offer three different levels of financial statements attestation:
An audit provides the highest level of financial assurance by requiring outside verification of information and testing of transactions. An audit must be conducted by a CPA independent of your company and requires full disclosure of financial statements.
A review provides limited assurance through analytical procedures and inquiries. A review requires that our team be independent of our client. All appropriate disclosures must be included in reviewed financial statements.
A compilation is the compiling of financial information into a formal financial statement, without verification of or assurance about the resulting document. Our team can create reports on a monthly, quarterly, or annual basis, based on information from client management.
Employee Benefit Audit Plans
As a general rule, employee benefit plans with 100 or more eligible participants must have an annual audit as part of their Form 5500 filing. These audits, whether for a defined contribution or defined benefit plan, require more specific audit procedures that differ from those performed in an audit of a company’s financial statements. Our team can help you ensure your company is in compliance with the regulations the Department of Labor sets forth.
MHCS is a member of the American Institute of Certified Public Accountants’ (AICPA) Employee Benefit Plan Audit Quality Center (EBPAQC). Membership requires a firm to designate an employee benefit plan audit partners, team members, and to meet continuing professional education requirements specific to employee benefit plan audits and quality control programs for employee benefit plan audits.
Fraud Detection and Deterrence
Our MHCS Fraud Detection and Deterrence Services team has experience working with businesses and organizations to identify potential fraud risks and implement prevention strategies. A consulting engagement can be customized based on client needs. Detection services can include detailed review of financial information, review of bank records, personal interviews and general observation. Deterrence services include assessment of internal controls, operation review, risk assessment, and fraud awareness training.
Red Flag Reporting
A main way fraud is detected is through employee whistleblowing and a key to prevention is providing an easy way for employees to report misconduct. Red Flag Reporting provides a safe, secure, and anonymous hotline and website to report fraud/theft, misconduct, safety violations, unethical behavior, and more. In addition, clients are provided emails and newsletters to set the tone at the top for ethical behavior at their company and training related to fraud awareness.
A part of fraud deterrence is providing a way for employees to report fraud and other concerns safely, securely, and anonymously 24/7. Red Flag Reporting is your hotline for fraud/theft, misconduct, safety violations, unethical behavior, and more. They offer a nationwide toll-free number 24/7/365, 200+ languages, quarterly emails and newsletters, detailed reports, and more.