Frequently Asked Questions

A financial statement audit is an independent examination of an organization's financial records by a licensed auditor. We evaluate whether your financial statements are presented fairly and in accordance with Generally Accepted Accounting Principles (GAAP).

Organizations seek audits to satisfy board requirements, secure financing, meet grant obligations, fulfill regulatory mandates, or simply build stakeholder confidence. An audit is the gold standard of financial assurance.

Audit: Highest level of assurance. Involves independent testing, physical verification of records, confirmations, and substantive procedures. Required by lenders, grantors, and most regulatory bodies.

Review: Limited assurance through analytical procedures and inquiry — no physical testing of transactions.

Compilation: The auditor organizes financial data into statements. No assurance is provided.

When confidence and credibility matter most, an audit is the appropriate choice.

Most audits take between 4 and 12 weeks from the start of fieldwork to the issuance of the final report. The timeline depends on:

• The size and complexity of your organization
• The quality and organization of your financial records
• The scope of the engagement
• Responsiveness to information requests

Organizations that arrive well-prepared move significantly faster. We provide a detailed client request list before fieldwork begins to help you get ready.

Commonly requested items include:

• General ledger and trial balance
• Bank statements and reconciliations
• Accounts receivable and payable aging reports
• Payroll records and tax filings
• Fixed asset schedules and depreciation schedules
• Board meeting minutes and resolutions
• Contracts, grants, and agreements
• Prior-year audit reports (if applicable)

At the start of every engagement, we provide a tailored client request list so there are no surprises.

Absolutely. Many small businesses pursue audits proactively — not because they're required to, but because audited financials open doors. Banks offer better loan terms. Investors and partners respond with more confidence. Buyers pay higher prices during acquisition.

Beyond credibility, audits often surface internal control weaknesses and operational inefficiencies that cost businesses money. Catching those issues early pays for the audit many times over.

It depends on your funding and state law:

• Federal Uniform Guidance (Single Audit): Required when a nonprofit expends $750,000 or more in federal awards in a fiscal year.
• State requirements: Many states mandate audits when nonprofit revenue exceeds a threshold — commonly $500,000 to $1 million, depending on the state.
• Grantors and foundations: Many funders require audited financials as a condition of major grants.

Even when not required, audits strengthen board oversight and donor confidence — both of which are critical for mission-driven organizations.

Board members have fiduciary responsibility for the financial integrity of the organization. Key things to understand:

• The audit committee (or full board) selects and oversees the independent auditor — not management.
• The auditor's primary accountability is to the board, not to executive staff.
• Board members should review and discuss the management letter, which contains findings and recommendations beyond the financial statements.
• A clean audit opinion does not mean there are no issues — it means the financial statements are fairly presented. The management letter often contains important internal control observations.

External audit: Performed by an independent, third-party auditor to provide assurance to outside stakeholders — boards, investors, lenders, and regulators. This is what most people mean when they say "audit."

Internal audit: Evaluates the organization's own internal controls, operational efficiency, risk management, and governance — primarily for management's benefit. The focus is on identifying weaknesses before they become problems.

Gerry Fisher Auditing provides both. Many clients benefit from internal audit support between annual external audit cycles.

Forensic auditing is an investigative process used to detect fraud, embezzlement, financial misstatement, or financial misconduct. It goes beyond standard auditing — we reconstruct transactions, trace funds, and build a documented evidence trail.

It's typically needed when there are:

• Unexplained account discrepancies or missing funds
• Allegations of theft or embezzlement from employees or management
• Unusual financial patterns flagged by staff or board members
• Whistleblower reports or external complaints
• Legal proceedings requiring financial evidence

Forensic audit findings are prepared to withstand legal scrutiny and can be used in litigation or regulatory proceedings.

The Sarbanes-Oxley Act (SOX) was enacted to protect shareholders from fraudulent financial reporting. It formally applies to publicly traded companies, requiring rigorous internal control documentation and independent attestation.

However, SOX frameworks are widely adopted by private companies, nonprofits, and government entities as a best-practice standard for financial governance — especially organizations seeking outside investment, preparing for acquisition, or subject to heightened regulatory scrutiny.

We help organizations assess their internal controls against SOX principles and close any gaps before they become liabilities.

The audit report is the beginning of the conversation, not the end. After issuing the report:

• We provide a management letter detailing any internal control deficiencies, findings, and recommendations.
• We walk leadership and the board through the results in plain language — no jargon.
• We help prioritize corrective actions and, if needed, assist with implementation planning.

Our goal is not just to deliver a report — it's to ensure the findings lead to stronger financial operations.

Simple. Fill out the free consultation form below and tell us about your organization and what you're trying to accomplish. We'll follow up promptly to discuss scope, timeline, and the right approach for your needs — at no cost and with no obligation.

Most clients find that an initial conversation clarifies exactly what type of engagement makes sense for their situation.